Czech finance minister proposes raising 2022 budget deficit to $13.6 bln -Czech TV

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Czech Finance Minister Zbynek Stanjura speaks during an interview with Reuters in Prague, Czech Republic, June 9, 2022. REUTERS/David W Cerny

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PRAGUE, July 25 (Reuters) – Czech Finance Minister Zbynek Stanjura has proposed lifting the 2022 spending budget deficit target to 326.9 billion crowns ($13.59 billion), from an approved program of 280 billion crowns, Czech Television described on Monday, citing an inner doc.

The Finance Ministry has sought to increase this year’s deficit designs as it sees larger paying out to relieve the stress of surging electrical power prices and also the costs of the war in Ukraine, and the authorities is owing to talk about the price range amendment this week.

The governing administration had by now signalled a greater spending plan deficit this year even as it maintains options to keep on chopping the hole from report concentrations observed in the wake of the COVID pandemic as well as owing to speedier condition wage and pension hikes under a previous administration.

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In June, Stanjura explained to Reuters he aimed to hold the deficit underneath 330 billion crowns.

Czech Television described the ultimate deficit determine could transform in advance of the cupboard debates it on Wednesday.

The price range will depend on higher spending, for instance for dealing with the stream of Ukrainian refugees, a even further pension rise and the introduction of a new discounted electricity rate plan. Tax earnings amid high inflation is also increasing, Czech Television stated.

Just after taking energy in December, the centre-right government pledged to slice the deficit, which strike a report 420 billion crowns in 2021, pushing the overall fiscal gap to 5.9% of gross domestic products, just about two times the European Union-mandated ceiling of 3%.

Authorities designs see the fiscal gap again under 3% in 2025.

($1 = 24.0480 Czech crowns)

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Reporting by Jason Hovet
Editing by Chris Reese and Angus MacSwan

Our Standards: The Thomson Reuters Believe in Rules.

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