* Coalition leader Civic Dems want faster deficit reduction
* Negotiator wants 2011 3.6 pct 2011 gap vs 4.8 pct plan
* Partner sees struggle to meet even 4.8 pct target
By Robert Mueller
PRAGUE, June 23 (Reuters) - The leading Czech right-wing Civic Democrat party aims to cut the 2011 fiscal deficit at least to 3.6 percent of economic output, much deeper than previously released plans, party officials said on Wednesday.
The target, which analysts say would be highly ambitious, comes as centre-right parties that are forming a new government sit down with the outgoing finance minister to begin work on the 2011 budget before taking power, most probably in mid-July.
The Civic Democrats, with the conservative TOP09 party and centrist Public Affairs, won a strong majority in May elections promising austerity and a battle against corruption.
Martin Kocourek, the Civic Democrat's main economic expert and a possible for finance minister, said the party wanted to slash 70.5 billion crowns ($3.74 billion) in spending, including cutting the amount of money paid in state wages by a tenth and reducing social benefits.
The aim was a fiscal gap at 3.6 percent of gross domestic product in 2011, he told Reuters, confirming a report in daily Lidove Noviny.
The party's leader and likely next prime minister Petr Necas had targeted a 2011 deficit at 4.0-4.5 percent of gross domestic product, but softened his line earlier this month to commit to a a ceiling of 4.8 percent.
Civic Democrat economic specialist Michal Doktor said appetite for further cuts and an improving economic outlook in the country's trade partners will help lower the budget more.
"It is a combination of a willingness to cut more and a slightly more favourable outlook on the economic development in the European Union, mainly on countries that we depend on (for trade)," Doktor told Reuters.
SOFTER LINE
The Czechs and central European neighbours including Poland generally kept public deficits and debt lower than many of their richer western neighbours both before and after the global financial crisis erupted in 2008.
But to meet the EU's 3 percent of GDP ceiling on the deficit, they all must wring more savings from economies that are still relatively poor and in need of extensive investment at a time when growth and budget revenues have slumped.
The deficit is expected to hit 5.3 percent in 2010, in line with promises made by the outgoing government.
Petr Gazdik, a negotiator for the conservative TOP09, a partner in the emerging coalition, said there was a risk the parties would have to find more cuts to keep the deficit next year even under 5 percent.
"We are still making calculations on whether we will reach the 4.8 percent limit, but I am afraid it could even be 5 percent, and we would have to seek more savings," he said.
The parties have so far agreed in principle on measures such as cutting state salaries and lowering budgets for ministries and other public bodies.
Outgoing Finance Minister Eduard Janota is expected to hand over a plan to the incoming cabinet with a series of cuts and tax hikes to trim the 2011 budget gap by 68 billion crowns. (Writing by Jason Hovet; editing by Patrick Graham)