Opposition and government clash over Czech budget deficit and spending cuts
The Czech government will approve a budget with a sizable deficit on Monday, while opposition parties argue that deeper savings are possible.
On Monday the Czech cabinet will vote on a budget that still shows a significant deficit, despite a small recent reduction agreed by the governing coalition. Minister Boris Šťastný explained that one outlet trimming was accepted because more substantial savings are slated for the next fiscal year. Deputy Speaker Patrik Nacher described the deficit as "unrealistic" and noted that the government is the first to allocate two percent of GDP to defence.
Opposition figures, including Pirate Party leader Zdeněk Hřib, argued that immediate cuts could be made by eliminating certain agricultural subsidies and reducing debt-service expenses, while TOP 09 chairman Matěj Ondřej Havel pointed to euro-zone membership as a way to secure cheaper loans. The debate also touched on high fuel prices, with industry minister Karel Havlíček expected to present measures, though no specifics were offered. All participants agreed that politicians' own salaries are already adequate, but raised concerns about multiple office-holding and suggested linking parliamentary pay to fiscal responsibility.
Why it matters
The budget debate determines how Czech taxpayers' money will be spent and whether the deficit will grow.
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