Coalition yet to agree on Czech state budget for next year

Prime Minister Andrej Babiš (ANO) says it is unclear whether the governing coalition will agree on next year’s state budget at talks on Monday. He expects a deal within a week, with the government due to approve the proposal next Monday. The Finance Ministry proposes a deficit of CZK 389 billion, up from CZK 310 billion this year. Junior coalition partners SPD (Freedom and Direct Democracy) and the Motorists want the deficit reduced. Mr Babiš defended the proposal, saying the deficit would amount to 3.5 percent of GDP, slightly below the EU average of 3.6 percent.