President Zeman has signed an increase in the budget deficit to 500 billion

The government has also prepared a proposal for a new compensation bonus for entrepreneurs and needs additional spending to combat the pandemic.

According to the proposal, the total budget revenues this year should be 1.39 trillion crowns and expenditures 1.89 trillion CZK. Revenues should thus be lower by 102.7 billion crowns compared to the approved budget and expenditures higher by 77.3 billion crowns.

According to the economists contacted, the proposed deficit of 500 billion crowns is unjustified. According to them, the current economic situation and the latest estimates of economic development would justify a deficit of around 400 billion crowns. According to the chairwoman of the National Budget Council Eva Zamrazilová from this week, the consolidation of public finances is even more in sight.

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However, the Minister of Finance Alena Schillerová (for YES) argues that the Czechia belongs to the countries with the lowest indebtedness and the highest ratings. “We are among the countries with the lowest indebtedness and the best ratings. It is our duty to take advantage of this excellent situation and not turn off the massive support of the economy,” she said during the discussion in the Chamber.

The opposition has traditionally criticized the increase in the deficit. Opposition politicians have blamed the government, for example, for not caring about reserves in times of growth and for not making savings in times of crisis. They also did not like the fact that the government wanted to push through a budget change in the accelerated negotiations in a state of legislative emergency.

This year, the Ministry of Finance expects a decrease in tax revenues by 99.6 billion crowns compared to the originally expected collection. The main part of this is the approved tax package, which will prepare the state budget by CZK 87.7 billion. On the contrary, budget revenues from social security contributions or emission allowances should increase.

In contrast, the expenditure of the Ministry of Health, for example, is to increase by eight billion. Of this, seven billion is earmarked for orders for covid-19 vaccines. The Ministry of Culture should receive added half a billion crowns for the operation of contributory organizations. The Ministry of Labor should improve by almost five billion. The amount is for increased child allowances, replacement alimony from the state for non-payers or community service.


Source: EuroZprávy.cz by eurozpravy.cz.

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