Babiš: draft budget breaks no law, budget council is useless

Prime Minister and ANO party leader Andrej Babiš said on NOVA TV the draft state budget for this year does not violate the fiscal responsibility law and rejects criticism from the National Budget Council, which he described as an unnecessary institution. The cabinet has approved a budget with a CZK 310bn deficit. The council says the maximum lawful deficit would be CZK 247bn. Babiš said the ANO–Freedom and Direct Democracy (SPD)–Motorists’ party coalition wants to invest in transport infrastructure and hospitals, will not raise taxes and sees a balanced budget as unrealistic. He also said an audit of defence contracts is planned and confirmed defence spending of about 2% of GDP.