Prime Minister Bohuslav Sobotka installs Ivan Pilný in the office of the Minister of Finance

On Wednesday 24 May 2017, Prime Minister Bohuslav Sobotka installed Ivan Pilný in the office of the Minister of Finance, following his appointment in the morning by the President of the Czech Republic at the Prague Castle. Ivan Pilný will replace Andrej Babiš who was dismissed.

“Minister Pilný takes over the department just 5 months before the end of term of the current government. There is no time to look around; it is time to complete the various important tasks of the ministry and the government. The main tasks I expect the new minister to deal with include securing funds for the planned salary increase for civil servants and reinforcing investment funds for this year and next year, in particular for the key construction projects in transport. In addition, I expect completion of the approval process for the amendment of the Budgetary Rules Act and making operational of the so-called receipt lottery under the Electronic Registration of Sales scheme. It will also be important to define a uniform procedure for the use of the European Structural and Investment Funds (ESIF) and create conditions for faster use of ESIF funds, as well as to prepare a financing model for the construction of a new unit in the Dukovany nuclear plant. Preparing a concept and a draft proposal for a new income tax act, as well as submitting an analysis on the use of confiscation orders are also among priorities in my eyes,” said Prime Minister Bohuslav Sobotka.

The new minister will have the crucial task of preparing a draft national budget for 2018, which will envisage a 10-billion decrease of the deficit compared to 2017 (down to CZK 50 billion), an increase in the average old-age pension by CZK 501 as from 1 January 2018, providing means to cover the expenditure for sickness-insurance benefits at the level of CZK 32.7 billion, an increase in the child allowance by CZK 300 per month, an increase from the current CZK 920 to CZK 969 in the assessment base for the public health insurance premium for the persons, for which the contributions are paid by the state, and other improvements of the social conditions which were implemented by the government of Bohuslav Sobotka based on the very successful development of the Czech economy.

The change in the post of the minister of finance is the 8^th personal change in the cabinet during the term of Bohuslav Sobotka’s government.

Priority tasks for the new Minister of Finance Ivan Pilný:

1. Securing funds for a further salary increase for civil servants.
2. Reinforcing investment funds for 2017 and 2018.
3. Preparation of the draft national budget for 2018.
4. Completion of the approval process for the amendment of the Budgetary Rules Act, defining a uniform procedure for the use of the European Structural and Investment Funds (ESIF) and creating conditions for faster use of ESIF funds.
5. Making operational of the so-called receipt lottery under the Electronic Registration of Sales scheme.
6. Preparing a financing model for the construction of a new unit in the Dukovany nuclear plant.
7. Preparing a concept and a draft proposal for a new income tax act.
8. Submitting an analysis on the use of confiscation orders.