Govt approves preliminary 2015 budget deficit draft at Kc100bn


16.06.2014 16:47

Prague - The Czech government approved preliminary draft expenditures and revenues of individual ministries and other state budget chapters, and a draft of the total budget deficit for 2015 at Kc100bn today, Finance Minister Andrej Babis said after the cabinet's meeting.


Ministr financí Andrej Babiš. ČTK Doležal Michal

The government will continue in the debate over the budget until September when it has to approve the draft and submit it to the Chamber of Deputies, Babis said.

"We ended the first round of the marathon of discussing the budget today. The budget maintains a Kc100bn deficit, which was proposed earlier, and contains a growth in wages of firemen, teachers and policemen, a growth in pensions and an increase in investment," Babis said.

In addition, the Finance Ministry is able to ensure that the state debt does not increase despite the planned budget deficits, according to Babis. Babis earlier said the debt should stabilise at about Kc1,700bn.

But Babis also said today that the approved draft is not final. Ministries controlled by Social Democrats (CSSD), for example, demand a further sum of about Kc4.6bn.

Babis also said he wants ministries to show in detail where their money go. The Defence Ministry, for example, is preparing "two strange contracts worth Kc3.5bn", he said.

In the same way, the Foreign Ministry could make an audit of its assets and representative offices, Babis added.

The government already approved a hike in expenditure frameworks for 2015 and 2016 at the end of May. They should increase by Kc16bn from the earlier approved Kc1,153bn for 2015 and by Kc27bn from the approved Kc1,163.5bn for 2016.

The government also agreed on a 3.5 percent growth in civil servants' wages next year.

Salaries of constitutional officials could rise by 1 percent next year.

The basic data of the budgets of constitutional institutions were approved by the Chamber of Deputies' budget committee on June 12 already.

They are the budgets of the Chamber of Deputies, Senate, Presidential Office, Supreme Audit Office, Constitutional Court and ombudsman.

The parameters of the budgets of the six selected constitutional institutions have been debated and approved by the Chamber of Deputies' budget committee since 2013.

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