The Czech economy would have to grow by 11 percent in order for the state budget to return to deficits of around 40 and 50 billion in the medium term. Minister of Finance Alena Schillerov (for YES) said this on Sunday on Czech television.
Schiller’s does not consider reducing VAT on food, it would not reduce it, according to them |
The Czech National Bank will increase the growth of the Czech economy by five percent for five years, the European Commission by five percent. According to the ministers, the budget deficit in the first year will be you, but she did not want to state the specific word. The government should not fully increase the tax, she said.
The originally approved deficit for this year was 40 billion crowns, but the government had to raise it to 200 and then 300 billion crowns due to the effects of the coronavirus epidemic. Now the House will discuss the government’s proposal for its external and 500 billion crowns. I just think it will be your deficit, I don’t want to read it for a long time, it would be unprofessional, she said. She added that there is no evidence for this now.
The minister said that if the House under the government to submit to the end of the full consolidation of public finances for the years 2021 and 2027, then it will submit it. Termin until the end of the bag was labeled ibenine. The proposal was submitted in the budget committee by KSM MP Ji Dolej, who wants to connect it to the amendment, increasing the deficit to 500 billion crowns.
If the Chamber of Deputies closes in this way, then the minister said. She pointed out that the ministry will work on the budget for five years from mid-August, and the insight into the years 2022 and 2023 is related to that. Let’s prepare for those three years, for the seven years there will be mountains, she noted. She recalled that the governing coalition enforced in the parliamentary amendment an amendment to the budget of responsibilities, which includes seven years of full consolidation of the structural deficit so that in 2028 it will be on the same level as pandemics.
We are very worried about this, said Eva Zamrazilov, the chairwoman of the National Budget Council, in the debate on the development of the deficit. According to them, the reason for the unsettling is the combination of the fact that the Chamber of Deputies approved the deficit of 500 billion, and at the same time in the spring it approved a loose act on the rules of liability ratios. According to n, both of these patterns are maximalist. she said that even with a deficit of 300 billion for five years it is absolutely brick and 250 billion is unacceptable for it.
If the government had exhausted the spending space in those three years, the national debt would have surpassed 50 percent of gross domestic product in 2023, she warned. It is necessary to define the fact that the crisis will not break through and that we will invest again. We must not prolong the crisis, Zamrazilov added.
Last week, the National Budget Council published its report on the long-term sustainability of public finances. She said that Czech public finances are now unsustainable in the long run. Minister Schillerov in T said that he did not underestimate at first. But at a time when we are in an unprecedented economic crisis, the worst since the economic crisis of the 1930s, making these projections here is considered really at least incorrect, the km open, Schillerov said.
It is the same conclusion around us that Kadoron first worked out on the long-term sustainability of public finances according to the Act on the Rules of Budget of Responsibility, Zamrazilov responded. She stated that she first issued the council in the autumn of 2018, when she was satisfied that she had entered the approval budget. Therefore, after the debatch, she undertook that Kadoron would publish it in June, so as not to leak negative information into the process of preparing the budget.
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