Czech FinMin Janota does not rule out gap up to Kc200bn this year

The state budget for this year was originally approved with Kc38.1bn deficit but in November the gap widened to Kc52.2bn. The gap will virtually exceed Kc175bn due to the crisis this year, according to an earlier estimate of the Finance Ministry.

At end-November, the state budget showed a record deficit of Kc169.4bn.

"I do not rule out at all that the level (of the deficit) will be somewhere near Kc200bn," Janota said in the discussion programme Questions of Vaclav Moravec on the public broadcaster Czech Television.

He also said that the unfavourable state budget development could possibly worsen the rating of the Czech Republic that would have an adverse effect on debt repayment and worsen conditions for state bonds.

During the economic crisis it is hard to predict precisely the state budget development, Janota said. The budget balance will be affected by revenues at the end of the year and also by the fact whether the ministries spend all the money they claim this year, he said.

Autor: ČTK
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