(Bloomberg) -- The Czech government should stop real growth of salaries in the public sector as one of the ways to stabilize the country’s finances after the coronavirus pandemic, according to Finance Minister Alena Schillerova.
“In the coming years, I would like to make sure that public-sector wages don’t grow, or at most that they merely match inflation,” she said on Czech Television.
Schillerova’s comments come as the state budget is set to repeat or exceed last year’s record deficit because of an expanded fiscal stimulus. Rapid growth in salaries since 2015, led by increases in the public sector, has boosted consumption in the central European country of 10.7 million people and kept inflation above the central bank’s 2% target for the past two years.
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