Monday, 20 November 2017

FinMin: EU subsidies may significantly help Czech 2018 budget

ČTK |
13 September 2017

Prague, Sept 12 (CTK) - The result of the state budget in 2018 may be very positive thanks to the gaining of EU funds, Czech Finance Minister Ivan Pilny (ANO) told journalists on Tuesday.

The Finance Ministry has proposed the 2018 budget with a deficit projected at 50 billion crowns.

Compared with the 2018 state budget draft worked out in June, the Finance Ministry now increased the budget's expenditures and revenues equally by 21 billion crowns. The ministry increased the revenues by raising the estimated economic growth from 2.9 percent to 3.1 percent and improving the expected tax incomes.

"The next finance minister will not have an easy role. But I believe that as the European money starts to come, the result of the budget for next year may be eventually very positive," Pilny said.

On Monday, the three-party coalition government agreed on a 15-percent pay rise for teachers and a 10-percent pay rise for other employees in the public sector as of November.

Due to this, Pilny increased the budget revenues by 21 billion crowns, which should be enough to cover the pay rise itself.

However, further money must be found for universities and research and science. Just this money is to provide by the ministries from their planned expenditures that have not yet been spent. Some ten billion crowns are to ne found in this way.

The ministries have not found sufficient money from their planned expenditures, Pilny said.

Pilny said at least next year, the economic growth would continue or would stabilise.

"However, we already have some signs that this will not last forever. The labour market lacks some 190,000 employees, which strongly limits exporting companies," he added.

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