Cabinet to discuss revised budget on Monday

The Finance Ministry has put forward a new draft of the 2013 state budget, being discussed by the cabinet on Monday, accounting for a drop in revenues and cuts in spending next year by 41 billion crowns. The budget deficit is to remain at 100 billion crowns, the same as in the previous draft. The cuts proposed are to affect science and research, transport infrastructure, teachers’ salaries and programmes co-financed by EU funds. The government must submit the draft budget to the Chamber of Deputies by November 23. The revised version of the budget bill, the ministry revealed, is taking into account current economic forecasts as well as the failure by the government so far to push through a tax package raising both VAT rates by 1 percentage point. The government has tied a vote on the bill this Wednesday to a vote of confidence.

Author: Jan Velinger