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Czech FinMin lowers 2017 draft state budget revenues and expenditure

09.09.2016  13:58

The changes are due to newly specified revenues from the EU budget and other financial mechanisms which are to be 18.2 billion crowns lower than in the July draft. The government will start debating the draft state budget on Monday, September 12. It is to approve the bill by end-September and then send it to the Chamber of Deputies. The third and final reading is to start on Wednesday, December 7. The estimated revenues from EU funds have been decreased because of the lower drawing of money designated for EU projects in the first half of 2016, according to the Finance Ministry. The draft also supposes that the public finances deficit will amount to 0.5 percent of GDP in 2017 and 2018. The EU demands a deficit below 3 percent. The 2017 draft state budget includes higher pay for teachers and health care staff, more money for the health insurance paid by the state for selected groups of the population and an increase in pensions. Teachers's salaries have gone up by 8 percent as from September, while the base pay increased by 6 percent. The Finance Ministry predicts economic growth at 2.4 percent.