State budget deficit to reach CZK 89.6bn in 2006, up by 20.4% against plans.
State budget deficit to reach CZK 89.6bn in 2006, up by 20.4% against plans. The state budget deficit in 2006 is to reach CZK 89.6bn (EUR 3.2bn) in 2006, representing 20.4% overshooting of the plans for CZK 74.4bn deficit, the finance ministry Financing and Debt Strategy for 2007 reads. The increased deficit for 2006 resulted from the additional borrowings worth CZK 18.8bn above the planned CZK 155.4bn, which are aimed at paying before maturity the government obligations to the Czech National Bank, among others. In 2007 the state budget deficit is to grow to CZK 91.3bn, in 2008 – to CZK 117.7bn, while in 2009 it is to slightly decline to CZK 110.1bn. In 2007 the total planned government’s gross borrowing requirement without the revolving of T-Bills will be about CZK 159.2bn, and will be used for covering the planned state budget gap, the planned maximum resources for the Czech Consolidation Agency worth CZK 13.3bn, the creation of reserves worth CZK 10bn for the eventual transfer of the positive difference between the income from insurance revenues and the expenditures on pension insurance for 2006 in the special pension insurance account, the refinancing of due, medium and long-term state bonds amounting to CZK 43bn and the repayment of loans from the European Investment Bank totalling CZK 1.8bn,