Czechs 2012 budget deficit around 105bn

PRAGUE: Czech Finance Minister Miroslav Kalousek will propose a 2012 budget deficit of 105 billion crowns ($6.13 billion), down from 135 billion crowns planned this year, he said on Sunday.

Kalousek's plan is in line with a previously announced target to cut the public finance gap to 3.5 percent of gross domestic product from 4.6 percent this year.

But this was the first time he outlined a figure for the central budget deficit.

"We are targeting 3.5 percent of GDP next year that means a deficit of 105 billion crowns," Kalousek said.

The centre-right government won an election last year on pledges to cut spending and tackle bloated pension, health and welfare systems. It aims to cut the budget gap below 3 percent in 2013 and to zero by 2016.

Copyright Reuters, 2011