Czech budget gap narrows by 27.1% y/y in Jan-Feb 2012 on higher tax revenue.

By bne IntelliNews March 2, 2012
The Czech central budget deficit narrowed by 27.1% y/y to CZK 16.6bn (EUR 671mn) in the first two months of 2012 mainly thanks to higher tax revenue, the finance ministry said. The two-month shortfall reached 15.8% of the full-year plan. In February alone, the budget swung into a gap of CZK 37.5bn from a surplus of CZK 21bn in the previous month. Total budget revenue in January to February rose by 6.2% y/y to CZK 167.5bn and expenditures edged 1.9% higher to 184.02bn. Revenue from taxes increased by 9.2% y/y to CZK 77.3bn, driven by higher collection of excise and value-added taxes. VAT collection improved by 6.3% y/y to CZK 29.2bn and excise tax revenue advanced by nearly 14% to CZK 26.5bn, while revenue from corporate income tax declined by CZK 0.2bn y/y to CZK 1bn. The 2012 budget envisages a 4% y/y growth in corporate income tax revenue, a 15.5% increase in VAT revenue and a 2.2% y/y increase in revenue from excise tax.

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