Government approves next year’s budget with 2.3 percent deficit

The Czech government on Monday approved the state budget for next year with a deficit of 100 billion crowns, or 2.3 percent of the country’s GDP, Prime Minister Bohuslav Sobotka said. The state expenditures should next year reach 1.219 trillion crowns. The draft budget takes into account the planned introduction of a lower, 10-percent VAT rate on certain goods as well as the cancellation of fees for visiting a doctor, higher tax breaks for families with children and a slight increase in pensions. The draft budget for 2015 is now set for a debate in the lower house of Parliament.

Author: Jan Richter