Deficit may double as result of economic downturn

Finance Minister Miroslav Kalousek has made clear that the state budget deficit for 2009 could practically double as a result of the economic downturn. On Czech TV’s debate programme Otázky Václava Moravce on Sunday, the minister said that the deficit could go as high as 75 billion crowns (the equivalent of around 3.5 billion US dollars). According to Mr Kalousek, the final numbers will depend on the country’s overall economic performance. The state budget, approved in December, had counted on a deficit of 38.1 billion crowns, but the previous number was based on projections the economy would grow by 4.8 percent. Following the increased impact of the global financial crisis, the finance ministry has now estimated that the Czech economy could grow by as little as 1.4 to 1 percent.