Czech parliament passes 2018 state budget bill

21. 12. 2017

The 2018 budget's revenues are 1314.5 billion crowns and the expenditures are 1364.5 billion crowns.

 

The Czech parliament smoothly passed the state budget for next year on Tuesday, approving the last transfers in the budget thanks to which more money will go to social services and farming and food processing.

The 2018 budget's revenues are 1314.5 billion crowns and the expenditures are 1364.5 billion crowns.

The budget bill was supported by 140 MPs in the 200-Chamber of Deputies. The budget bill was submitted by the new minority government of ANO movement's leader Andrej Babis, however, it was prepared by the previous centre-left government of Bohuslav Sobotka (Social Democrats, CSSD).

The lower house plenary session on Tuesday voted on a number of proposals for financial transfers in the budget before taking the final vote on the whole budget. Most of these proposals were rejected.

The lower house approved to increase spending on social services by 3.3 billion crowns, on farming and food processing by one billion crowns, and on investment in kindergartens and elementary schools by 0.3 billion crowns. In total, the transfers concerned some seven billion crowns, or about 0.5 percent of the total expenditures.

In a resolution accompanying the budget bill, the Chamber of Deputies expressed support for a future increase in spending on regional schools and universities and it recommended to the government to raise teachers' salaries by 15 percent as of September.

The budget is based on the estimated economic growth of 3.1 percent, while last year the GDP increased by 2.4 percent. In 2018, the government wants to receive 722 billion crowns in taxes, or 35 billion more than this year. The total sum of 434 billion crowns is earmarked for the payment of pensions.

The government said the Czech economy profited from favourable internal and external conditions, but it warned against a possible further increase in the prices of real estate.New barriers in international trade caused by Brexit are considered another considerable risk. Other negative factors include the risk of a slowdown of the Chinese economy or problems of the Italian banking sector.



Czech parliament passes 2018 state budget bill (21.12.2017)

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