Coalition parties count on 4.6 percent of GDP central government deficit in 2011

The centre-right parties poised to form the next government said they had agreed on a state deficit of 135 billion crowns or 4.6 percent of Gross Domestic Product next year. Incoming Prime Minister Petr Necaš said the planned central government budget counted on savings of 54 billion crowns. The declared target is much more ambitious than the 4.8 percent of GDP deficit for next year that Mr. Necaš mentioned on June 11. Last year’s budget deficit was 5.9 percent with a 5.3 percent deficit aimed at this year. The caretaker Czech government had already agreed to cut the deficit to 3.0 percent, the limit for adopting the single currency euro and judged as a sustainable deficit level, over the next three years.