State budget deficit increased to CZK 59.8 bn at the end of November from CZK 35.5 bn in October. The state budget for this year was originally approved with the deficit of CZK 49 bn. However, including some special expenditures approved by the parliament it swelled to CZK 61 bn. One of budget problems is a worse-than expected VAT collection. A difference between expectations of VAT revenues and real outcome is CZK 15 bn. On the other hand, contributions to the social security system exceeded the planned level by CZK 6 bn. The state budget deficit is assumed not to fulfill the approved level also due to lower-than-expected revenues from an auction of UMTS licenses. The government relied on CZK 20 bn as revenue from sale of the licenses, now it seems to be realistic to calculate with CZK 2 bn.
Regulated rents should increase by 5-7% in July 2002. Also other administratively regulated prices will be higher next year, except of prices of postal services. The growth in regulated prices will next year contribute 1.1 percentage points to inflation: Their contribution to inflation this year can be estimated to 1.9%.
CNB will announce balance of payment figures for the third quarter of 2001 today at 10 am. We expect that the current account deficit will reach CZK 18.5 bn and the financial account surplus should increase to CZK 32.8 bn.
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