Czech state budget in black during first half of 2006

The finance ministry has released figures showing a state budget surplus of 7.6 billion crowns - the equivalent of roughly 340 million US dollars - in the first half of 2006. The figure is almost twice the surplus during the first six months of the previous year. On Monday at a press conference, Finance Minister Bohuslav Sobotka announced that the outgoing government had decided on a provisional budget deficit amounting to 88 billion crowns for 2007. This would translate into a public spending deficit of 3.3 percent of the gross domestic product. According to the finance minister, the proposal is fully in line with the convergence programme agreed for the development of overall debt and public finance deficits between Prague and the European Union, in preparation for adoption of the single currency euro. The Czech Republic intends to adopt the currency in 2010. The proposals will have to be approved by the incoming government. So far, a new government has yet to take office one month after Czechs went to the polls in a general election.

Author: Jan Velinger