The Czech economy should grow by 1 percent in 2013, according to the draft state budget for the coming year. Czech finance minister Miroslav Kalousek told the Czech public TV that the compound tax quota will increase by approximately one percentage point to 35.3 percent and that the state should collect CZK 214bn from VAT next year.
Jaroslav Zavadil, a trade union leader warns the prediction is unrealistic and that he expects the recession to worsen to a 1.5% drop in GDP, and falling household consumption. The lower house of the Czech parliament will debate the draft budget proposal on Tuesday.
