2013 state budget returned to cabinet for redrafting
The lower house of Czech Parliament returned the 2013 state budget bill to the government for reworking on Wednesday after the cabinet was unable to win support for a package of proposed tax hikes, forcing it to abandon the original draft proposal. Finance Minister Miroslav Kalousek said he would resubmit the bill within a month based on lower revenues of approximately 22 billion crowns with respective cuts in expenditures in the public sector. The finance minister has vowed to maintain the deficit in public spending under 3 percent of the GDP in 2013 at any cost. According to some sources the finance ministry plans to make fresh cuts in infrastructure and research spending. Analyst have warned against cutting expenditures to stimulate growth.