Fischer: State budget gap to reach at least CZK 150bn in 2009

Prague, July 1 (CTK) - Deficit of the Czech state budget for 2009 will reach at least Kc150bn, Prime Minister Jan Fischer said Wednesday after meeting Czech National Bank (CNB) governor Zdenek Tuma. Estimates have so far reckoned with the amount of Kc150bn as the limit for this year's budget deficit. Tuma and Fischer said it is necessary in the future to change the structure of the state budget expenditures, above all mandatory spending, to ensure a satisfactory development of public finances. Mandatory expenditures include welfare benefits, unemployment benefits and pensions, for instance. "It will be difficult in the future to finance public finances with such a structure," Fischer said. Cuts in mandatory spending will not be automatic, though, according to him. All aspects have to be taken into account including expediency... [read full story]                    

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