Czech Lower House approves state budget for 2004

The Chamber of Deputies has approved the government's state budget for 2004, including a record deficit of 115 billion crowns, or more than 4.2 billion US dollars. The budget was supported by 98 out of 198 deputies present, with 95 deputies from the opposition Civic Democratic Party and Communists voting against. The 115 billion crown deficit was proposed by the government of Prime Minister Vladimir Spidla as part of a sweeping, multi-year budget reform package. Parliament has already given a green light to other reform measures including sales tax increases and corporate tax cuts which take effect next month. The deficit, based on a budget with 754 billion crowns in expected revenues and 869 billion crowns in expenses, is around 4 per cent higher than this year's record spending gap. Overall, the prime minister hopes to bring the deficit under control over the next three years so that the Czech Republic can qualify for changing its currency to the euro before 2010. Meanwhile, the approved budget for 2004 must still be signed by President Vaclav Klaus.