Czech government approves draft budget for 2015, deficit to stay within EU rules

By bne IntelliNews September 22, 2014

The Czech government approved on September 22 the draft budget for 2015 envisaging more investments to support the economy that is recovering from a record-long recession but at the same time keeping the deficit within EU rules. CTK news agency reported.

The budget sets a deficit limit of CZK 100bn (EUR 3.6bn), lower than the CZK 112bn approved for this year. However, better-than-expected budget revenue will lead to a smaller gap in 2014 at some CZK 90bn, Prime Minister Bohuslav Sobotka has said earlier. Thus, the government decided to raise public sector wages by up to 3.5% as of November instead of January 2015 as previously planned. The pay hike will cost the budget CZK 1bn this year.

Budget revenues should grow to CZK 1,119bn in 2015 from CZK 1,099bn in 2014 and expenditure is to reach CZK 1,219bn, up from CZK 1,211bn. Tax revenues, including social and health insurance, are planned at CZK 975.6bn next year, which is by 3.2% more than in 2014. Mandatory spending should go up by 1.6% CZK 714.7bn.

The budget sees the overall finance gap widening to 2.3% of the GDP in 2015 from 1.5% expected for 2014. The gap, however, will be stay the EU’s limit of 3%.

Next year’s budget is based on the finance ministry’s latest macroeconomic forecast from July that sees the economy expanding by 2.5% and inflation at 1.7% in 2015. 

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Four Czechs on Kyrgyzstan skiing holiday killed in avalanches

Four Czech citizens on a skiing holiday were killed in avalanches that occurred in Kyrgyzstan's northern district of Ak-Suu over the weekend, according to the Issyk-Kul regional police department. ... more

Czech Raiffeisenbank profit in 1-3Q 2023 dropped by 27.5% y/y

The Czech branch of Raiffeisenbank (RB) registered a 27.5% year-on-year drop in profits in the first three quarters of 2023 to CZK3.96bn (€162mn). RB’s assets grew by 13.3% to CZK679bn, Czech ... more

South Africa regulator stops Sasol's bid to sell sodium cyanide unit to Czech rival Draslovka

South Africa’s Competition Tribunal has prohibited a proposed intermediate merger involving the sale by a local company of its sodium cyanide business to another from the Czech Republic. Local ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    7 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    8 days ago
  4. Don't mention the "D" word - Ukraine
    5 days ago
  5. UBN: The US Needs to Wake Up
    6 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    25 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    30 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    28 days ago
  5. Saudi Arabia to scale back plans for Neom city
    15 days ago

Reports

Dismiss