Prague - Czech Prime Minister Mirek Topolanek said Wednesday that his government's stimulus plan is to give the Czech economy a boost amounting to 4.7 per cent of gross domestic product (GDP), or nearly 180 billion koruny (7.8 billion dollars).

The stimulus is to cost taxpayers some 73.5 billion koruny, or 1.9 per cent of GDP, and expand country's budget gap accordingly, Finance Minister Miroslav Kalousek said.

The budget deficit is expected this year to exceed 3 per cent, a limit the European Union requires for adopting the euro.

Topolanek and his ministers, who oppose kick-starting the economy through increased public spending and protectionist measures, unveiled Wednesday details of the stimulus plan, which aims to soften a hard landing for the export-driven economy.

While the Central European country of 10.3 million was spared a blow by the global financial crisis, vanishing orders from Western Europe have been pulling down the once-booming economy.

The plan works with a recession forecast of up to 2 per cent, Kalousek told a news conference.

The pro-export plan aims to preserve some 50,000 to 70,000 low- income jobs through welfare insurance cuts and stays away from directly handing out money to citizens.

"We do not want to give people who lose jobs welfare pittance. The goal is to protect their jobs," Topolanek said.

The measures, some of which were already approved in late 2008, include corporate tax cut effective since January, more money for road construction and business loan guarantees.

The center-right cabinet also aims to encourage investment by relieving small firms and entrepreneurs of advance tax payments this year, combined with speedier write-offs.

The government expects to sell excess carbon-emission credits worth 10 billion koruny and spend the earnings on energy efficiency projects, such as heat-proofing public buildings and households, that should employ 12,000 people, Environment Minister Martin Bursik said.

While Topolanek's center-right government may introduce some of the measures by executive order, others require parliamentary approval and may be blocked in parliament's lower house. (dpa)