Czech President Vaclav Klaus has signed the state budget law for 2005. The
law envisages a deficit of 84 billion Czech crowns. However, opposition
parties and most economists say the deficit will be much higher, over 100
billion crowns, once the state has covered the losses of the Czech bailout
agency, Ceska Konsolidacni Agentura, which primarily ensures the
privatisation of state-owned companies.
Mr Klaus also signed an amendment to the income tax law on Wednesday. The
new law introduces tax relief for families with children, joint taxation
of married couples, and faster depreciation of assets for businesses. The
government says it would help families and companies save tens of billions
of crowns in the coming years.