PRAGUE, Czech Republic—The Czech Cabinet voted Monday to raise taxes and curb spending to lower the 2010 budget deficit to 155.3 billion koruna ($9.1 billion) or 5.2 percent of the country's gross domestic product.
The austerity package, aimed to alleviate the effects of global recession on the export-oriented Czech economy will be debated by the country's Parliament on Thursday. The measures include freezing of pensions, tax hikes and state salary cuts.
Premier Jan Fischer said he would see Parliament's debate as a confidence vote in his caretaker Cabinet. The Czech economy is expected to shrink by 4.3 percent in 2009 and small growth of 0.3 percent is predicted for 2010.
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