The goal is to reduce the budget deficit by 70 billion crowns
The Czech government aims at adjusting taxes without increasing the tax burden. The decision will therefore be made whether to adjust the pension system by raising the retirement age or to reduce the number of civil servants or to cancel state support for building savings. This was said by Prime Minister Petr Fiala during a visit to the Ministry of Finance. Finance Minister Zbyněk Stanjura wants to discuss the consolidation package in the spring in the House of Representatives and the Senate. However, no decision on the measures to be implemented has been approved. The Deputy Minister of Labour and Social Affairs, Šárka Jelínková, stated that there is consensus in the government on increasing the tax levy, so much so that many argue it should increase by 60 per cent over three years, but the Deputy Prime Minister and Minister for Regional Development, Ivan Bartoš, opposed this.
These measures are necessary because the last few years (2020, 2021) have seen the worst economic performance ever, in 2022 a deficit of CZK 360.4 billion was recorded. In 2023, the government wants to work on improving this and decrease the budget deficit to CZK 295 billion. However, the debt ratio in this year is expected to reach 45.8 per cent, the highest level ever.
The government wants to strengthen state control over the energy infrastructure, which is why the restructuring of the energy company ČEZ, in which the state holds a majority stake, is being considered. Discussions were supposed to focus on the separation of the old energy resources of CEZ, such as coal-fired, nuclear and renewable energy sources. Fiala emphasized today that the debate on energy security should not only be limited to state control over energy infrastructure, but also ensure sufficient sources of energy, in particular to develop renewables and nuclear energy, and free from dependence on unreliable energy suppliers such as Russia.
Sources: https://www.ceskenoviny.cz/
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