INSTANT VIEW 1-Czech 2006 budget gap exceeds target

    The Czech central state budget 
slipped into a 97.3 billion crown ($4.7 billion)  deficit for 
the full year 2006, the Finance Ministry said on Tuesday. 
 
KEY POINTS: 
(in CZK bln)       end-Dec 06   end-Nov 06      end-Dec 05 
 balance           -97.3        -30.92           -56.40 
 
 (For full table, click on......................[ID:nPRA001098]) 
 
- Revenues up 6.6 percent year-on-year, exceeding the rise 
accounted for in an updated budget plan by 3.8 percentage 
points. 
- Expenditure up 10.6 percent, exceeding the targeted rise by 
4.9 percentage points. 
- The full-year budget saw a 74.4 billion crown deficit on 
expenditure of 963.8 billion crowns, later amended to a gap of 
83.7 billion. The Finance Ministry had, however, admitted the 
full-year gap could exceed 100 billion crowns. 
- December spending included a 45 billion crown transfer of 
unused money into reserve funds, compared with a similar 46.7 
billion transfer in late 2005. 
- December spending included a 14 billion crown guarantee 
payment to the central bank. 
- The full-year 2007 budget sees a 91.3 billion crown deficit on 
expenditure of 1,040.8 billion crowns. 
 
 BACKGROUND: 
- The central state budget is the biggest part of the overall 
public finances. 
- The Finance Ministry has said the country would meet its euro 
Convergence Programme for 2006 but not in 2007. 
 
- For recent stories on the budget, click on [CZ-GVD-POL-RTRS] 
or [CZ-RTRS-DBT]. 
 
LINKS: 
- For an overview of the Czech central government budget, 
Reuters 3000 Xtra users can click on the ministry's website: 
    http://www.mfcr.cz 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
 ((Writing by Jan Lopatka; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: CZECH BUDGET/  
    

[PRAGUE/Reuters/Finance.cz]