Klaus signs law raising 2009 Czech budget deficit by 14 billion

The government said the raising of the deficit was necessary in view of the economic crisis. Otherwise the state would lack money to finance pensions, unemployment allowances and interests on the state debt.

The original deficit, projected at 38.1 billion crowns last autumn, has been raised to 52.2 billion at the proposal of the government.

The Finance Ministry, nevertheless, expects the 2009 budget's final deficit to reach about 165 billion crowns.

Out of the deficit's additional 14 billion, 2.5 billion is to go to pensions, 2 billion to unemployment allowances and 2.56 billion to regions for covering social services. Another 6,9 billion are needed to cover the interests on the state debt.

($1=17.037 crowns)

Autor: ČTK
www.ctk.cz