Cabinet approves draft state budget proposal

The Czech Cabinet has approved a draft state budget proposal for 2005 with a projected deficit of 83.6 billion crowns /about 3 billion US dollars/. Thanks to a last minute reduction of the budget deficit by 10 billion crowns the proposal falls just short of the criteria set by the European Commission's convergence programme. The proposal envisages a rise in salaries for some state employees, although the government failed to meet the demands of trade union leaders who requested a more even distribution of the available funds. The budget proposal was approved unanimously. The two opposition parties in Parliament are not prepared to support it.