Public spending limits until 2012 decided by ministers

The caretaker government of Prime Minister Jan Fischer also agreed public spending limits until 2012. Curbing government spending is one of the government’s biggest priorities. Newly installed Minister of Finance Eduard Janota has already taken a tough line calling for next year’s budget deficit not to exceed 170 billion crowns or 4.7 percent of Gross Domestic Product. The cabinet decided the deficit should fall from 165 billion crowns in 2010 to 160 billion a year later and 156 billion in 2012. The Finance Minister warned that even these levels would distance the country from adopting the single currency euro. For that the budget deficit needs to be below 3.0 percent.

Author: Chris Johnstone