PM promises state will make up for losses to municipal budgets

Prime Minister Andrej Babiš has said he will propose increasing state subsidies for local projects in municipalities in order to make up for the expenditures liked to coronavirus aid to small and medium-sized businesses.

In the past days municipalities have protested against the government‘s decision that the aid to entrepreneurs is to come from municipal budgets rather than state finances, saying they would lack money for vital local projects.

The prime minister said on Twitter that the state would more than make up for the compensation package by increasing state aid for local projects by 20 percent. He said the arrangement had been the only workable solution legally.