Cabinet approves draft budget

A spokeswoman for the Czech government has told journalists that the ruling cabinet has unanimously approved the draft budget for 2008. The draft budget submitted by the Finance Ministry reckons on a deficit of 70.8 billion Czech crowns or 3.5 billion US dollars. This amounts to 2.95 percent of GDP just below the crucial 3-percent limit set by the EU as one of the criteria for adopting the euro.

Areas that will be receiving significantly more money include education, culture and agriculture. The budget still has to pass a vote in the lower house of parliament where the centre-right governing coalition has a slender majority, which depends on the support of rebel MPs from the Social Democrat opposition.