Czech parliament approves 2007 state budget

...a 91.3 billion crown ($4.35 billion) shortfall.

The approval was expected as both the ruling righist Civic Democrats and the main opposition leftist Social Democrats contributed to the draft and wanted to avoid entering a restrictive provisional budget regime.

The central government budget, the biggest part of public finances, targets a deficit of 91.3 billion crowns which translates into a gap of 4 percent of gross domestic product (GDP) in the country's overall fiscal balance.

However, four budget amendments were approved earlier in the day that could boost the shortfall to its highest since a record gap four years ago.

The amendments seek to cut spending on pensions, healthcare and other expenditure mandated by law to create room to divert funds towards farm subsidies and hundreds of small projects presented by deputies from both sides of the floor.

Because of the amendments, rightist Finance Minister Vlastimil Tlusty actually voted against his own budget in the final vote.

[PRAGUE/Reuters/Finance.cz]