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The preparation of the Brno city budget has been affected by the impact of covid-19 on the economy and expected changes to the tax code, with an expected shortfall of CZK 2.2 billion in tax revenues. The City of Brno is planning cuts in almost all areas while finding other ways to finance investments. Photo credit: TMA / BD. 

Brno, Dec 8 (BD) – On Tuesday, Brno city council discussed the draft budget for next year, and the proposal was approved by the city assembly. The budget forecasts CZK 13.8 billion in revenues and CZK 15.3 billion in expenditure. 

The budget took into account the impact of covid-19 on the economy and the upcoming changes to tax legislation. A drop of CZK 2.2 billion in tax revenues compared to this year is expected. The city council has sought to make cutbacks in almost all areas, without causing significant reductions in investments.  

The city wants to compensate for the decrease in revenues by selling land and possibly shares in the Brno Technology Park. A further CZK 300 million in savings were found in operating expenses, and CZK 83 million was cut from funding to the city districts. 

Investment projects will be financed with the help of loans, increasing the budget by CZK 1.4 billion. Almost a third of expenditure (31.2%) will be allocated to planned investments for next year in various sectors.

Within the transport sector, capital will go towards the completion of the Plotní tram construction, the extension of the tram line from Osová to the Masaryk University campus in Bohunice, and to complete the outer city ring road project.

Further investments will support the construction of the Janáček Cultural Center and projects in the field of sports, such as a multifunctional sports and cultural center. 

The completion of the sewerage system in Brno II will continue at the cost of CZK 767 million. Further capital has been set aside for the reconstruction of water management infrastructure and the building or repairs of apartment buildings and nursing homes. 

None of the representatives voted against the draft budget; 38 voted in favour and 11 abstained.

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https://www.brnodaily.com/wp-content/uploads/2020/08/Brno-New-Town-Hall-credit-TMA-BrnoDaily-3-1024x683.jpghttps://www.brnodaily.com/wp-content/uploads/2020/08/Brno-New-Town-Hall-credit-TMA-BrnoDaily-3-150x100.jpgKim BingelBrnoNewsBrno,Construction,Economy,News,TransportThe preparation of the Brno city budget has been affected by the impact of covid-19 on the economy and expected changes to the tax code, with an expected shortfall of CZK 2.2 billion in tax revenues. The City of Brno is planning cuts in almost all areas while finding...English News and Events in Brno