The public finance deficit should reach the level of 1.93 percent of gross domestic product (GDP) next year and should gradually decrease over the next few years with 2018 being the year of achieving a balanced budget, such is the wording of current budget draft presented by the Finance Ministry on Monday. It includes a reserve on the decrease of value-added tax yields due to the decrease of VAT of selected foodstuffs and the payments return for gas in households. It incorporated the expenses for the programme of family houses' insulation and the contributions to residential outdoor educational excursion facilities and ski trainings as well as with expansion of nursery and day-care facilities. Valorisation of salaries in the public sector in the amount of 4 percent is also taken into account.
The Union of Employers (RUZ) did not support the current draft at the meeting of the so called tripartite which includes employers' representatives, trade unions and the Labour Ministry. "Indeed, we didn't support the state budget for two reasons. We believe that a unique opportunity is being passed up in that there are a number of positive factors now for consolidation. We feel that there are too few, if any, measures in the budget draft that would be aimed at making savings, rather than increasing revenues", said its first vice-president Luboš Sirota. The draft budget is to be submitted to Parliament by October 15th.
