Reuters: Czech government sticks to budget gap goal despite floods

09 June 2013

Czech Prime Minister Petr Nečas said that the Czech government will stick to its goal of keeping the budget deficit below 3 per cent of gross domestic product this year, despite floods that have caused widespread damage across the country.

"We will keep our strategic plan to have a public finance deficit of under 3 per cent of GDP this year", Nečas said. In 2012, the budget deficit was 4.4 per cent of GDP, but it included one-off factors including compensation payments to the Catholic Church for property seized by the former Communist regime after World War Two.

Nečas said the government had earmarked $206.75 million for repairs but that, with new rains swelling rivers again and some towns still under water, more funds would probably have to be allocated.

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