President Pavel To Discuss Government’s Deficit Reduction Package With Finance Minister
The five-party coalition government is expected to present the consolidation package together with the pension reform on Thursday. Photo credit: Petr Pavel, via Facebook.
Prague, May 9 (CTK) – Czech President Petr Pavel will receive Finance Minister Zbynek Stanjura (ODS) at Prague Castle on Wednesday morning to discuss the government’s budget consolidation package, the Finance Ministry announced earlier today.
Stanjura will make a statement for the media after the meeting.
The five-party coalition cabinet of Petr Fiala (ODS) is expected to present the consolidation package together with the pension reform on Thursday. Before this, the leaders of the coalition parties plan to hold further talks on the measures that the government wants to use to reduce the state budget deficit by at least CZK 70 billion next year.
According to its earlier statements, the bill could include around 60 austerity measures.
Stanjura previously said he would like to cut state subsidies by tens of billions of crowns. He has also proposed merging two reduced VAT rates into one, as well as shifting some items between the VAT rates.
According to CTK sources, a number of tax exemptions could be abolished, such as the discount for non-working wives, and sickness insurance for employees could be introduced.
The government has also committed to cuts to state spending.
Stanjura said the discussed measures were based on the opinions of the coalition parties and the recommendations of the government’s National Economic Council (NERV). He reiterated that most of the austerity measures would be on the spending side, and the government had pledged not to increase the overall tax burden.