Czech President Václav Klaus signed the 2013 state budget under which the state deficit will fall to CZK 100bn. The Lower House of parliament passed the bill a week earlier, following a vote on the government tax package. The package includes a VAT increase, as well as other taxes. Klaus repeatedly criticized the VAT increase and disliked the fact, that he was sent the bill just a few days before the end of the year. The budget foresees CZK 1,080.8bn in revenues and sets expenditure at CZK 1,180.8bn. The government plans to cover most of the CZK 100bn deficit with state bonds.
