* Sees 2010 GDP up 1.5 pct, higher in 2011
* Sees higher dividends from state firms to plug gaps
* CEZ says dividend policy unchanged for now
* FinMin still aims for 5.3 pct/GDP budget gap
(Adds finmin, CEZ comment on dividends, background)
PRAGUE, April 29 (Reuters) - The Czech Finance Ministry
raised its 2010 growth outlook to 1.5 percent from 1.3 percent
on Thursday, but said the budget still needed further savings to
avoid overshooting the government's target.
The ministry said in a quarterly update of its macroeconomic
forecast that the faster growth would be driven by exports
improving thanks to a recovery in European markets.
Next year, growth should accelerate to 2.4 percent, less
than the previously forecast 2.6 percent,
The ministry also maintained its 2010 fiscal deficit outlook
of 5.3 percent of gross domestic product, but said this would
require further savings, as predicted by Finance Minister Eduard
Janota earlier this week.
"The Finance Ministry had prepared autonomous estimate of
government performance in 2010 based on data from the beginning
of the year, and notified a public sector deficit of 5.9
percent," the forecast said.
"The government will therefore discuss and approve at its
nearest meeting a package of additional adjustments that will
secure meeting the target."
It said the adjustments would include higher-than-planned
dividends from state firms, spending freezes, and cuts in
spending privatisation revenue.
The government's biggest dividend earner is power firm CEZ
<>.
The ministry said thanks to higher profits, the CEZ dividend
would be higher than the ministry had pencilled in, but added
that it would not be significantly different from the 18.8
billion crowns the state got on its 69.8 percent stake last
year.
"We expect it will be similar as last year. It will be
higher than we had expected," said ministry spokesman Ondrej
Jakob.
"The original predictions included it being lower."
CEZ spokesman Ladislav Kriz said the policy of paying out
50-60 percent of net profit, including minorities but adjusted
for one-off items, remained unchanged.
He said the board's dividend proposal would be announced at
the end of May. That would be a month before the annual meeting
and around the time of the Czech May 28-29.
The left-wing Social Democrats, who lead opinion polls, have
said they wanted to raise the CEZ dividend.
(Reporting by Jan Lopatka and Jan Korselt)
