Czech govt to draft two 2011 budgets for successor to choose from

The coalition government that will emerge from the elections next May will be able to choose between the two bills, Fischer says in an interview that is to appear in HN on Friday and that HN's server iHNed.cz cited today.

"We've discussed [with Finance Minister Eduard Janota] the method that is usual in certain countries where the state administration manages to prepare both types of draft budget. That is why we can prepare two alternatives, a right-leaning and a left-leaning one - simply [two] ways to reach the projected deficit," Fischer said.

He said his government will not be deciding on what path should be taken, "but it will prepare this for its successor."

Next year's budget deficit is projected at 5.3 percent of GDP.

For 2011, iHNed.cz writes, Janota wants to draft a budget allowing to the deficit to be at least one percent lower than in 2010, i.e. by some 35 to 40 billion crowns.

Janota wants to propose ways to reach the deficit reduction for political parties to assess.

Fischer, whose caretaker government of unaffiliated experts is expected to govern until the May polls, touched on his cabinet's plans also during the question time in the Chamber of Deputies today.

He said his government will not prepare a tax reform. The tax reform will be up to the next political government. It is the voters who will decide on its shape and orientation, Fischer said.

As for the Czech state budget for 2010, the lower house approved it in first reading in late October, including the projected deficit of 162.7 billion crowns. The final vote is expected later this autumn.

($1=17.673 crowns)

Autor: ČTK
www.ctk.cz