Czechs cuts '07 budget gap forecast to 3.4 pct/GDP

...percent, a government document showed on Monday.

A version of Prime Minister Mirek Topolanek's presentation distributed to the media gave the better forecast but no further details. It said the data came from the Finance Ministry.

Czech central state budget has been performing better than last year with a 36.3 billion crown ($1.94 billion) surplus at the end of September. Traditionally, Czech deficits deteriorate at year end.

The government has adopted a series of reforms to bring the deficit back under 3 percent next year. It aims to slash the gap to 2.3 percent in 2010.

The Czechs have given up their earlier plan to adopt the euro in 2010, and now aim to join the euro zone in 2012 at the earliest.

The Finance Ministry is due to publish its quarterly economic forecasts on Wednesday.

[PRAGUE/Reuters/Finance.cz]