The Czech cabinet approved a 2002 budget framework that calls for a CZK 54 bn deficit (CZK 43 bn scheduled for 2001, CZK 100 bn expected in 2001). The budget, though, will face a hostile opposition in the Parliament, as the government included several controversial items into the budget. It, for example, counts on CZK 20 bn collected from the Russian debt while Russians have not paid a single koruna for years. Further, the government moved CZK 21 bn from privatization revenues to the budget. The government is also very optimistic on tax revenues where it foresees a better collection next year. Wishful thinking?
It appears, however, that the 2002 budget proposal may remain just that, a proposal. There is no apparent support for the budget within the Parliament (the Social Democrat government is a minority one, with only 74 out of 200 deputies) as all political parties are busy maneuvering for the 2002 election. Even the government seems resigned and prepares for a provisional budget.
(Ondřej Schneider)