Government To Hold Preliminary Discussions On Fiscal Consolidation Package

Seznam Zprawy this morning ran a source report noting that the Czech Cabinet is still a long way from approving a comprehensive fiscal consolidation package, with initial discussions set to take place today.

• The government is trying to find CZK70bn in savings for next year's budget amid plans to reign in fiscal deficit after it ballooned as a result of the COVID-19 pandemic. CNB officials have pointed to the need to reduce fiscal shortfall to help contain runaway inflation.
• The debate on fiscal consolidation has proven highly contentious, both within the ruling centre-right coalition and beyond. Seznam Zpravy reports that no comprehensive plan has been created as of yet, albeit the Finance Ministry has come up with a list of around 50 proposals to reduce spending.
• Cabinet members are expected to hold preliminary discussions on these proposals as soon as today, before Prime Minister Petr Fiala leaves for a trip to Asia next week. Coalition representatives will meet again near the end of April and are looking to finalise a compromise fiscal consolidation package by May 2.
• According to Seznam Zpravy, Finance Minister Zbynek Stanjura will explain all savings measures once they are greenlighted by the Cabinet. Barring unexpected delays, the final legislative proposal could be tabled in the Chamber of Deputies at the beginning of June.