Prague - Czech deputies approved the budget for 2011 with deficit of CZK 135 bil (EUR 5.4 bil), or 4.6 percent of the gross domestic product.
The budget was approved by the votes of all the deputies from the center-right coalition, while the opposition voted against the proposal.
Read more: 2011 budget: Czechs living more and more beyond means
Read more: Czech 2010 deficit can be 5.1 % of GDP: Minister
However, the voting was overshadowed by the resignation of Environment Minister Pavel Drobil over a corruption scandal that created a possibility of a no-confidence vote.
Read more: Czech minister resigns over corruption scandal
The budget revenues for 2011 are CZK 1,044 bil (EUR 42 bil), while the expenses CZK 1,179 bil (EUR 47 bil).
With the Czech center-right government firmly seated in the European austerity bandwagon, the 2011 budget includes a number of cuts and saving measures. The Czech Social Democratic Party, the largest opposition subject, said that the cuts will harm socially weak sectors.
Read more: Czech government approves austere budget and tax hikes
For the second consecutive year, no "pork barell" - MPs receiving funds for public projects in their constituencies - took place.
One of the few additional expenses was for the Czech universities, which will receive CZK 1,000 mil (EUR 40 mil) more than originally planned. According to the government, the confidence of investments markets in the Czech economy has increased, which means the Czech Republic will have to pay smaller yields, so it can borrow an additional billion. The measure, proposed by PM Petr Nečas, was supported by both the coalition and opposition.
