Czech lawmakers pass 2015 budget draft in first reading, deficit seen within EU rules

By bne IntelliNews October 23, 2014

The lower house of the Czech parliament approved in first reading the state budget draft for 2015 envisaging a higher deficit than the expected for this year but still within EU rules, CTK news agency reported.

The draft, which must go through two more readings before final approval expected in mid-December, assumes a 2.5% economic growth in 2015, slightly lower than the 2.7% expansion expected for this year.

The deficit limit is set at CZK 100bn (EUR 3.6bn), or by CZK 20bn more than the expected for 2014. This year’s budget has been approved with a CZK 112bn deficit but better-than-expected budget revenue will lead to a smaller gap at some CZK 80bn.

The budget sees the overall public sector gap widening to 2.3% of the GDP in 2015 from 1.5% expected for 2014 but below the EU’s limit of 3% of economic output.

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. 

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