Czech Republic overshoots 2006 budget deficit target

January 4, 2007 - 0:0
PRAGUE (AFP) -- The Czech government overshot its planned 2006 state budget deficit by 13.6 billion koruna (495.7 million euros, 653.9 million dollars) with the final deficit at 97.3 billion koruna, the agency CTK announced.

The targeted deficit was 83.7 billion koruna, itself revised upwards from an originally planned 74.4 billion koruna.

This year, Czech lawmakers have approved a deficit of 91.3 billion koruna, based on spending of 1.04 trillion koruna and revenues of 949.5 billion koruna.

That target is also widely expected to be exceeded, partly as a result of lawmakers transferring cash to regional government coffers from funds earmarked for mandatory government spending during the final budget vote in December.

The Czech government no longer counts on adopting the European single currency by the original target date of 2010 but has not set any new deadline.

In order to adopt the euro, governments must meet strict EU targets for public debt, deficits and inflation.