Czech FinMin to propose CZK 119bln 2007 budget gap

PRAGUE, Sept 24 (Reuters) - Czech Finance Minister Vlastimil Tlusty said on Sunday he would propose a 2007 central state budget with a 119 billion crown shortfall.

He added at a news conference that he will propose at a cabinet meeting on Monday that the government sell 16 percent of power producer CEZ<CEZPsp.PR> gradually through the stock market. Part of the revenue would be used to lower the deficit.

The overall public sector deficit, under the EU's ESA rules, would be 4.0 percent of GDP, Deputy Finance Minister Eduard Janota added. This would be 0.7 percentage points above the target set out in the country's euro convergence programme.

((Reporting by Jan Lopatka, writing by Alan Crosby; prague.newsroom@reuters.com; Reuters Messaging: alan.crosby.reuters.com@reuters.net; +420 224 190 477))

Keywords: ECONOMY CZECH BUDGET