Czech FinMin: Budget may pass first hurdle - paper

PRAGUE, Oct 24 (Reuters) - The Czech 2007 state budget draft may pass its first parliamentary reading after three opposition parties hinted they might vote for it, Finance Minister Vlastimil Tlusty was quoted on Tuesday as saying.

The minority government's draft budget, targeting a deficit of 91.3 billion crowns ($4 billion), is due to start its first reading in the lower house of parliament on Wednesday and support from opposition parties is key for it to pass.

Tlusty told the daily Pravo that the centrist Christian Democrats, the Greens and the Communists had objected to the budget's structure but signalled they may let it go through in the first of three readings.

"I am quite favourably surprised," Tlusty was quoted as saying in an interview. "(This) raises hopes for not only the budget but also for political and economic stability in the country."

But the Social Democrats, the second biggest party in the house after Tlusty's centre-right Civic Democrats, have opposed the draft.

They have said they could support the proposal only if the government of Prime Minister Mirek Topolanek drops a plan to sell a small stake in utility CEZ <CEZPsp.PR> to help plug the deficit [ID:nL16500432].

((For FACTBOX on budget forecasts and the process and timeline of approving a budget draft, double click on [ID:nL16534799]))

((Reporting by Marek Petrus; Editing by David Stamp; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477))

Keywords: ECONOMY CZECH BUDGET