Prague, July 23 (CTK) – Czech President Milos Zeman and Finance Minister Ivan Pilny (ANO) discussed the preparation of the 2018 budget bill and some aspects of Czech economy such as European subsidies and a shortage of workforce at their meeting on Sunday, which was also attended by Pilny’s predecessor Andrej Babis.
Babis, ANO leader who left the ministerial post in May, prepared the draft 2018 budget bill with a gap of 50 billion crowns.
Zeman’s spokesman Jiri Ovcacek said Zeman recommended that the budget drafters focus on investments rather than consumption.
Pilny told CTK that he tried to explain how the budget is being drafted and what processes accompany its preparation.
“There is really too little space [in the budget] to allow investments,” he said after the meeting in Lany, the presidential chateau near Prague.
He said the participants agreed that the growth of the state’s mandatory expenditures is untenable and causes the space for financing long-term priorities, mainly the transport infrastructure and the education system, to be very limited.
“Next time, it is necessary to consider ways out of the problem,” Pilny said.
“More should be spent on investments than on consumption. [A restriction of] the subsidies going to renewable sources of energy and of the 11-billion-crown sum earmarked for NGOs is advisable,” Ovcacek tweeted.
He cited Zeman’s long-lasting criticism of some aspects of the government’s economic policy including a low volume of public investments, the economic burden represented by subsidies to renewable sources of energy and some types of welfare benefits.
Pilny said 100,000 work positions are vacant and fail to be filled.
“We also discussed the situation where the inflow of EU subsidies will end soon, while we do not seem to be preparing for it,” Pilny said.
He said his opinions on many issues are identical with Zeman’s.
Babis told CTK that Zeman commented on the budget and was critical as usual.
“Nevertheless, I think we answered all questions he addressed to us,” Babis said.
In the weeks to come, Pilny will negotiate about the budget with individual ministers. He said ministries’ budget demands exceed the draft budget gap by 111 billion crowns.
On Monday, Pilny will have a meeting with Education Minister Stanislav Stech (for the Social Democrats, CSSD), who, supported by PM Bohuslav Sobotka (CSSD), demands an increase in the budget of universities.
