Czech c.bank chief says govt reforms first step

29.05.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

Tax and spending reforms proposed by the Czech government would help stabilise the budget in the short run, but fall short of ensuring its...

...long-term sustainability, central bank governor Zdenek Tuma said on Tuesday.

"It is the first step in the right direction, but it really is a first step which helps stabilise public budgets in the short term. However it does not guarantee sustainability of public finances over the longer horizon," Tuma told a seminar on the reforms in the Senate.

The package mixing tax changes and cuts in social and other spending aims to lower the general government -- or public budget -- deficit to 3.2 percent of gross domestic product (GDP) in 2008, from 4.0 percent forecast this year.

[PRAGUE/Reuters/Finance.cz]

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