Arbitrary figures
2010-07-13
When a retailer jacks up a price so that he can triumphantly
announce a sale, he's breaking the law. When a government
does a similar thing, it's business as usual. The new government
of Petr Nečas - which will be sworn in today - is triumphantly
planning to reduce the Czech budget deficit next year by Kč
74bn, to Kč 135bn, through spending cuts of Kč 54bn and
additional revenue of Kč 20bn. What the government doesn't tell
us is where it plucked these numbers from. They're based on
assumptions that almost no one has seen. The figures that are
publicly available show that the finance ministry had been
expecting a 5% increase in budget revenue next year and an
increase in spending of about 1%. However, the ministry
announced on July 1 that it makes no sense to publish any
revised forecasts, because the coalition talks have changed the
basic assumptions so much. So, until we see some hard revenue
and spending figures from the new government, we'll reserve
judgment on whether this will be a "reform" cabinet.
[Czech Republic]
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