FinMin proposes notable cuts in expenditures of some ministries


18.04.2014 20:56

Prague - The Finance Ministry has proposed significant cuts in expenditures of several ministries in the draft 2015 budget, the biggest cut of Kc8.5bn to be made by the Transport Ministry, the public broadcaster Czech Television (CT) said.


Ministerstvo dopravy ČR ČN Pavel Tůma

The cut in expenditures in the transport sector may endanger the construction of some roads and motorways. Transport Minister Antonin Prachar nevertheless said he believed the government would not finally make any cuts in transport.

"We will insist that subsidies from the state budget to the State Transport Infrastructure Fund be fulfilled completely," Prachar told CT.

Under the Finance Ministry's proposal, the Agriculture Ministry should cut expenditures by Kc6.2bn and the Interior Ministry by Kc2.9bn.

On the other hand, the Labour and Social Affairs Ministry should receive Kc14bn more, particularly in order to be able to raise pensions and some social allowances.

Agriculture Minister Marian Jurecka said the Kc6bn cut would affect national subsidies to farmers significantly. "I cannot imagine that. Kc6bn is over 40 percent of our budget," he told CT.

Prime Minister Bohuslav Sobotka said he considered the planned cuts too hard. "We need the budget to envisage support of economic growth, investments in infrastructure and to reasonable solve salary issues of employees in the public sector," Sobotka told CT.

The Chamber of Deputies is to receive more than Kc76m more from the state budget.

The first draft of the state budget for next year envisages a deficit of Kc100bn. Budget revenues are planned to reach Kc1,015.5bn in taxes and other payments. Expenditures are to amount to Kc1,115.5bn.

Proposed cuts in expenditures of individual ministries:

Transport Ministry- Kc8.4bn
Agriculture Ministry- Kc6.2bn
Interior Ministry- Kc2.9bn
Finance Ministry- Kc1.5bn
Industry Ministry- Kc1.3bn
Culture Ministry- Kc1.1bn

Proposed increases in expenditures of individual ministries:

Lbour and Social Affairs Ministry+ Kc14bn
Defence Ministry+ Kc1.6bn
Education Ministry+ Kc0.5bn

Source: CT

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