Czech Budget Deficit Reaches 269 Billion

According to the Ministry of Finance, the state budget deficit in the Czech Republic has increased to 269.1 billion CZK in November, up from 210.7 billion CZK in October. Despite the deepening deficit, the ministry assures the government will not exceed the approved budget deficit of 295 billion CZK for the entire year.

November is traditionally a month that burdens the state budget with significant deficits. According to Zbyněk Stanjura, the Minister of Finance, there is no quarterly tax collection like income taxes or from quarterly VAT payers on the revenue side. However, expenses regularly include an advance on regional education or subsidies for renewable energy sources.

Before the end of the year, investment expenditures traditionally accelerate. “In November, 24.8 billion CZK was paid out, which is the most so far this year,” added the head of the state treasury. According to him, investment fulfillment already amounts to 180 billion out of the planned 210 billion CZK.

At the end of November, budget revenues reached 1.719 trillion CZK, an increase of 21 percent year-on-year. Expenditures for eleven months were 1.988 trillion CZK, 13 percent higher than last year.

In the first eleven months of last year, the state-operated with a deficit of 337.1 billion CZK. According to the ministry, revenues from the European Union, dividends from the ČEZ company, and high corporate income tax collection significantly contributed to the year-on-year improvement of the balance of 68 billion CZK.

Stanjura expects high state revenues in December. “Quarterly advances on corporate tax are due. We expect another advance on tax from unexpected profits, which is higher than in previous months. There is also the insurance collection for social security in December. So I assume that we will maintain the planned deficit of a maximum of 295 billion for this year,” he added.