2011 draft budget envisages far-reaching cost-cutting measures

Finance Minister Miroslav Kalousek’s proposed draft budget for 2011 aims for a deficit of 135 billion crowns, or 4.6 percent of GDP, taking cost-cutting measures further than expected, the daily Hospodářské Noviny wrote on Tuesday. According to the paper the proposed 58.8 billion crown cut in expenditures is four billion more than originally planned and would affect all ministries. The draft proposal is to be submitted to the government on Wednesday and is expected to spark a heated debate. Cabinet members are still at odds over this year’s cuts, with ministers from the Public Affairs party arguing that they were having to shoulder a heavier burden than their colleagues in government.