Czech budget debate morass deepens

6 November 2012

The Czech government will continue debating the 2013 state budget proposal on Wednesday. The controversial draft is drawing criticism from all sides, including junior partners in the coalition government.
“We are pressed for time. We want to prevent a stopgap budget, and the government will discuss the issue at least one more time,” said Prime Minister Petr Nečas.
The current draft budget cuts spending by CZK 41bn, in order to keep the deficit at CZK 100bn. The revised budget proposal takes into account the state’s worsening economic outlook and the government’s failure to push through the tax hike package. The spending cuts will mostly impact the Transport Ministry, Agriculture Ministry and Trade Ministry.
ČTK quotes the Transport Ministry’s spokesman Martin Novak saying that the newly proposed budget cuts to the State Transport Infrastructure Fund (SFDI) will jeopardize construction of the D3 motorway from Prague to the Austrian border as well as modernization work for the D1 motorway. Work on the basic railway corridors could also be at risk, Novak said.

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