Government approves draft state financial statement

The government has approved a draft state financial statement, according to which the budget posted a 142.8 billion crown deficit in 2011. The original plan anticipated a 135 billion budget deficit; the difference was reportedly due to problems with drawing subsidies from European funds. The Czech Republic's public finance deficit dropped to 3.1% of gross domestic product last year, while the government anticipated a deficit of 3.7%. Prime Minister Nečas noted that this was no reason to rejoice, saying the public finance deficit was better because of decreased investment activity on the part of municipalities and universities. He added that it was clear that efforts aimed at fiscal austerity must continue.