PRAGUE, Jan 3 (Reuters) - The Czech central state budget gap
fell by almost 36.1 billion crowns in 2010 to 156.3 billion
crowns ($8.36 billion), below the Finance Ministry target, the
ministry said on Monday.
In December alone, the budget showed a deficit of 15.5
billion crowns, lower than the 23 billion in December 2009.
The year-on-year comparison was affected by the drawing of
32 billion crowns from reserve funds early in 2009. Without this
impact, the year-on-year improvement in the overall balance
would be bigger.
The central state budget deficit target was 162.9 billion
crowns.
The Finance Ministry's November forecast sees the overall
public sector gap -- including the central budget, regional and
local budgets, various public funds and public health insurance
-- at 5.1 percent of gross domestic product (GDP) in 2010.
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KEY POINTS:
(in CZK bln) 01-12/10 01-11/10 01-12/09
year-to-date balance -156.3 -140.76 -192.39
(For full table, double click on................[]
COMMENTARY:
PAVEL SOBISEK, CHIEF ECONOMIST, UNICREDIT, PRAGUE
"It is positive the originally planned deficit was not
exceeded. If this is reflected in the ESA95 methodology, the
Czech Republic will show a deficit at the level of 5 percent,
which is a better average compared with many European countries
and considering the crisis."
TOMAS VLK, ANALYST, PATRIA FINANCE
"For the crown, it is neutral news, there could have been
some negative impact in case (the budget) result was
significantly worse.
"The news shows the path the government is taking is a path
for solid performance of public budgets. The question is this
year, when key issues will be on the (government's) agenda."
MARKET REACTION:
Crown a touch weaker in quiet trade after the data, last
traded at 25.088 to the euro <EURCZK=> from 25.05 earlier.
DETAILS:
- 2010 revenue rose by 2.7 percent from a year ago to 1,000.5
billion crowns, and expenditure dropped by 0.9 percent to
1,156.8 billion.
- Revenue accounts for 94.8 percent of the annual target.
Overall expenditure for the period stands at 95 percent of the
full-year plan.
- Revenue from social insurance rose 2.3 percent, while social
payments including pensions rose 0.4 percent on the year.
- Tax revenue rose 4.7 percent year-on-year, mainly due to
excise and value-added taxes.
- The central state budget is the biggest part of the overall
public sector finances which also include local governments, the
health insurance system and various state agencies and funds.
- The full-year budget deficit target was 162.9 billion crowns.
The overall fiscal gap was planned at 5.3 percent of gross
domestic product and the latest Finance Ministry forecast
released on November of 2010 saw it at 5.1 percent.
LINKS:
- For recent stories on the budget, click on []
or [].
- For an overview of the Czech central government budget,
Reuters 3000 Xtra users can click on the ministry's website:
http://www.mfcr.cz
- For LIVE Czech economic data releases, click on <ECONCZ>
- Instant Views on other Czech data []
- Overview of Czech macroeconomic indicators []
- Key data releases in central Europe []
- For Czech money markets data click on <CZKVIEW>
- Czech money guide <CZK/1>
- Czech benchmark state bond prices <0#CZBMK=>
- Czech forward money market rates <CZKFRA>
(Writing by Jana Mlcochova)
