Czech c.bank cuts 2008 public budget gap forecast

02.11.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

The Czech central bank has cut its 2008 forecast for the public finance deficit after taking into account fiscal reforms approved by parliament,...

...the CNB's Inflation Report showed on Friday.

The report revealed the bank has lowered next year's fiscal gap forecast to 2.5 percent of gross domestic product (GDP) from a previous estimate of a 3.0 percent shortfall made in July.

The 2007 deficit forecast was cut to 3.4 percent of GDP from 3.5 percent, bringing it into line with the finance ministry's own updated estimated released on Wednesday.

Next year's improvement is based on reform steps included in a fiscal reform package, which cuts welfare spending, hikes the sales tax, and cuts welfare, corporate taxes and personal income taxes. The changes were approved by parliament in September.

[PRAGUE/Reuters/Finance.cz]

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