(Repeats story published over night)
PRAGUE, Sept 23 (Reuters) - The Czech centre-right cabinet
approved on Wednesday the 2011 state budget draft, cutting the
public sector gap to 4.6 percent of gross domestic product from
5.3 percent planned for this year.
Following is a list of main savings measures included in the
budget, based on information from the Labour Ministry and the
Finance Ministry.
FRAMEWORK:
* Revenue is set at 1,044.8 billion crowns ($56.34 billion),
up from 1,022.22 billion in 2010.
* Spending is projected at 1,179.8 billion crowns, down from
1184.92 in 2010
* The deficit is seen as 135 billion crowns, down from 162.7
expected this year.
CUTS IN WELFARE, ELEVATED SOCIAL TAX
* Changes in the welfare system, including unemployment
benefits and social insurance tax, which should bring total
savings of 26.8 billion crowns. The changes include:
- Extending elevated social insurance tax rate paid by
employers at 25 percent instead of a drop to 24.1 percent. This
should mean an additional income of 9.2 billion.
- Maintaining sick pay compensation at the 2010 level of 60
percent of pay after two months of illness should save 2.3
billion crowns.
- Extending the period over which an employer, rather than
the state, pays a sickness leave for an employee to 21 days from
14 now. This should cut spending by 1.7 billion crowns.
- Ceiling on social insurance tax payments by employees will
remain at 6 times the average salary instead of falling back to
previous 4 times the average should bring 3.1 billion.
OTHER TAXES
- Leaving value-added rates at 10 and 20 percent, above
previous 9 and 19 percent levels. The lower rate may rise
further during 2010.
- A special 100 crown tax per person to cover flood damage
can bring about 4.5 billion crowns.
- Cutting the annual state subsidy on new construction
savings accounts to 2,000 crowns per person, per year, from
current 3,000 crowns. Taxing the state subsidy by a 50 percent
rate, instead of the zero rate applied now, and taxing interest
should bring about 6 billion next year.
* CUTS IN PUBLIC SECTOR PAY
- A 10 percent drop in government operating expenses
including the total wage bill. It is up to each institution
whether it will cut jobs or wages or make a combination of both.
The proposals excludes teachers.
- A 5 percent cut in wages of senior officials and
lawmakers.
- Other measures aimed to save millions of crowns include
taxing the presidents salary, the ex-president's rent and
various subsidies of lawmakers.
(Reporting by Jana Mlcochova)
