Cabinet debates state budget, austerity measures at ministries

The cabinet met on Monday to debate the draft state budget for next year, which it plans to approve on 19 January. The governing coalition has already rejected the proposal of the previous government led by Petr Fiala, which envisaged a deficit of CZK 286 billion. As a result, the Czech Republic will enter the new year under a provisional budget, limiting state spending. Finance Minister Alena Schillerová said on Czech Television that a higher deficit may prove inevitable. According to cabinet members, the alternative could include halting important transport infrastructure projects.

Within cost-cutting measures the government has approved the elimination of 322 civil service positions from the start of January. The largest reductions will affect the Office of the Government, the Finance Ministry and the Industry Ministry. According to Prime Minister Babiš, this is only the first round, with further savings still to be sought.

At the start of this year, there were 73,520 civil service positions.