* Czech 2009 budget deficit at record 192.5 bln crowns
* Revenue hit by economic crisis
* Tax hikes, spending cuts this year aimed at lower gap
(Adds quotes, background, outlook)
PRAGUE, Jan 4 (Reuters) - The Czech central state budget
deficit reached 192.5 billion crowns ($10.44 billion) in 2009,
almost five times an original plan as government revenue sank in
the economic downturn, a deputy finance minister said on Monday.
The Czech economy contracted around 4 percent last year on
the back of a dive in foreign orders, cutting tax income and
raising spending as unemployment hit a three-year high.
Analysts said a deficit of 192.5 billion crowns would likely
drive the overall public sector fiscal deficit to more than 6
percent of gross domestic product.
Officials had said in recent weeks that they were aiming to
keep the deficit below 175 billion crowns but Prime Minister Jan
Fischer on Sunday had pointed to a preliminary figure of about
195 billion crowns.
With only weak economic recovery seen this year, Fischer's
interim government has pledged to cut the budget gap with tax
hikes and spending cuts, but has struggled to persuade political
parties to do more before elections due in May.
Deputy Finance Minister Bohdan Hejduk told Czech Radio on
Monday that the higher-than-planned budget gap was mainly due to
a drop in state revenue.
The government had planned a 38 billion crown gap in its
original 2009 budget plan, drafted before the global economic
crisis swept into central Europe. []
"This figure is final, with only possible minor
adjustments," Hejduk said. "The income side (of the budget) was
influenced by the crisis and anti-crisis measures."
The central state budget makes up the main part of the
overall public sector fiscal balance, which also includes local
government budgets, health insurance and off-budget funds.
The Finance Ministry was due to release the official data on
the 2009 budget gap later on Monday.
Pavel Sobisek, chief economist for UniCredit in Prague, said
overall fiscal gap could be 6-7 percent of gross domestic
product, double the European Union's 3 percent ceiling required
for euro adoption.
He said the government could cut this year's deficit -- but
only if parties hold back on fresh spending in the run-up to the
election.
"There is a risk that (previous) saving measures will be
watered down and this would push the deficit higher," he said.
The 2010 budget foresees a deficit of 163 billion crowns,
with the overall public sector gap at 5.3 percent of GDP.
Fischer has warned this year's gap could grow if
left-leaning parties push more spending -- such as rolling back
maternity pay cuts, cancelling doctor fees or adding an extra
pension payment -- in a January parliamentary session.
($1=18.43 Czech Crown)
(Reporting by Jason Hovet; editing by Patrick Graham)
