Government to begin discussing new budget proposal

Members of the Czech cabinet will be discussing a new proposal for the 2013 budget on Monday. Despite the expected decline in tax revenue, the proposal will be based on a 100 billion crown deficit. Finance Minister Miroslav Kalousek had said earlier that the main cuts will be in transportation, science and research, as well as co-financing of EU projects. Mr Kalousek is preparing an alternative budget proposal given the possibility that VAT rates will not be raised and also considering the estimated slower growth of the economy. The lower house returned the original budget proposal to the cabinet for reworking because of disagreements within the coalition over the tax reform package. The government has to present the new budget proposal by November 23.

Rebel Civic Democratic MPs who have been refusing to support the tax reform package will continue talks with the government over the reforms, said one of the rebels Ivan Fuksa, although they are unlikely to change their stance. The lower house will renew deliberations on the reform package on Tuesday

Author: Masha Volynsky