Press Releases

27. 6. 200814:07

June 27, 2008: Government Approved Budget for Next Year and a Pay Rise for Teachers

The Czech Government today approved state budget for 2009 as well as the request of the Minister of Education to raise funds for teachers´ salaries for this year The Government also approved an amendment to the Income Tax Act, the second stage of the pension reform, and a Bill on the Bar. After the Government meeting, Finance Minister Miroslav Kalousek said the Government had agreed to reduce social insurance for employees by 1.5 per cent for next year and keep the current tax rate at 15 % just as the amount of rebates. “Reduction of social insurance means that a taxpayer with a gross income of 10,000 CZK a month will save 150 CZK each month.“ This adjustment principally means that in 2009 natural persons will have the same tax burden as in 2008, while the deficit of public budgets will not be increased,“ said Finance Minister Kalousek.

The Government has also approved state budget for next year. Public budget deficit is expected to reach 39.1 billion CZK. According to the Finance Minister, next year’s expenditures are planned at 1.053 trillion CZK. The proposal also envisages a deficit in public finances amounting to 1.5 per cent of the GDP.

Teachers To Get a Pay Rise

Premier Mirek Topol├ínek has told a press conference that the Government today approved a rise in the funds for teachers´ salaries. This year the Ministry of Education will receive 500 million CZK for salaries. “Higher salaries for teachers have also been calculated into the budget for next year. That is why I do not expect any problems,“ said the Premier. The members of the Government today also suspended negotiations of a motion submitted by Green Party deputies on referendum on the direct election of the President of the Republic. The Premier said the proposal would be discussed with representatives of the coalition. “We have agreed to discuss this particular issue within the framework of K9 next week. I see this as a slightly questionable step, nevertheless I fully respect the opinion of our coalition partner,“ the Premier was quoted as saying on this subject.