CNB Bank Board approves budget for 2007

At its meeting on 7 December 2006 the CNB Bank Board approved the CNB budget for 2007, amounting to CZK 1,965 million (the budget has been compiled at prices inclusive of value added tax). The planned budget is less than CZK 2 billion, i.e. at the level of previous years, even though it includes expenditures associated with the regulation and supervision of the capital market and insurance companies.

The Czech National Bank covers its necessary operating costs from its income and does not constitute an expenditure chapter of the state budget. By law, its budget must be broken down so as to show clearly its investment expenditure and operating costs. A total of CZK 165 million in investment expenditure and CZK 1,800 million in operating costs is planned for 2007.

The Czech National Bank regularly submits annual financial reports to the Chamber of Deputies (the lower house of the Czech parliament) for review. For several years now, these annual reports have been published regularly on the CNB website.

The most significant investment expenditure items	Amount
Cash storage, handling and processing equipment	CZK 33 million
HW and SW	CZK 41 million
Security equipment	CZK 16 million
Packing materials for banknotes and coins, and other consumables	CZK 33 million
Construction and technology investment (including payment of part of the amount withheld for the completion of the CNB's backup facility)	CZK 26 million

The most significant operating cost items	Amount
Currency issuance and management (banknote and coin purchases from external suppliers)	CZK 208 million
Salaries and mandatory insurance contributions	CZK 1,072 million
Contracted services of which: computer support	CZK 120 million CZK 66 million
Telecommunication charges	CZK 86 million
Asset repairs and maintenance of which: computer maintenance and servicing	CZK 120 million CZK 48 million
Energy consumption	CZK 44 million

Pavlína Bolfová, CNB spokesperson