Prime Minister Necas said yesterday that the cabinet will neither raise taxes nor increase the budget deficit as a result of the flooding. He said that the government will be able to deal with the flood within the framework of the existing budget.
CNB Governor Miroslav Singer said that repairs to destroyed infrastructure and construction of new flood-prevention structures can help kick-start the economy. He said the country’s overall wealth will be reduced but that the flooding could add tenths of a percent to GDP. "Floods reduced country’s total wealth, increased its readiness and resistance against future natural disasters," Singer said.