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

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

PRAGUE, July 25 (Reuters) – Czech Finance Minister Zbynek Stanjura has proposed lifting the 2022 finances deficit goal to 326.9 billion crowns ($13.59 billion), from an authorised plan of 280 billion crowns, Czech Tv reported on Monday, citing an inner doc.

The Finance Ministry has sought to lift this yr’s deficit plans because it sees larger spending to ease the burden of surging vitality costs and in addition the prices of the warfare in Ukraine, and the federal government is because of focus on the finances modification this week.

The federal government had already signalled the next finances deficit this yr even because it maintains plans to proceed chopping the hole from file ranges seen within the wake of the COVID pandemic in addition to as a consequence of quicker state wage and pension hikes below a earlier administration.

In June, Stanjura informed Reuters he aimed to maintain the deficit below 330 billion crowns.

Czech Tv reported the ultimate deficit determine might change earlier than the cupboard debates it on Wednesday.

The finances will depend on larger spending, for instance for coping with the circulate of Ukrainian refugees, an additional pension rise and the introduction of a brand new discounted vitality fee scheme. Tax income amid excessive inflation can also be rising, Czech Tv stated.

After taking energy in December, the centre-right authorities pledged to chop the deficit, which hit a file 420 billion crowns in 2021, pushing the general fiscal hole to five.9% of gross home product, virtually twice the European Union-mandated ceiling of three%.

Authorities plans see the fiscal hole again beneath 3% in 2025.

($1 = 24.0480 Czech crowns)

Reporting by Jason Hovet
Enhancing by Chris Reese and Angus MacSwan

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