Minister: Budget deficit could be far higher than figure approved on Wednesday

The Czech Republic’s budget deficit could rise to CZK 70 billion next year due to a slowing of the economy, the minister of labour, Petr Nečas, said on a TV debate programme on Sunday. He said if there was a recession the shortfall could be even greater. The 2009 budget, which was approved by the Chamber of Deputies on Wednesday, envisages a deficit of CZK 38.1 billion. Minister Nečas said the government would reassess the budget at the beginning of 2009 according to economic developments in the latter part of this year.

Author: Ian Willoughby