The state budget deficit rose to CZK 337.1 billion at the end of November from CZK 286.7 billion in October. The Finance Ministry said in a press release on Thursday. According to Finance Minister Zbyněk Stanjura (ODS), the state will maintain the planned deficit of CZK 375 billion for the whole year.
Last year, the deficit was CZK 401.5 billion at the end of November, which was the worst interim result since the Czech Republic was founded.
Total budget revenues for the 11 months rose 7.2 percent year-on-year to CZK 1.423 trillion.
According to the MoF, the revenue growth was mainly driven by tax and insurance revenues. At the same time, the year-on-year comparison is negatively distorted by dividend income, which has not yet been paid to the state this year.
At the end of November, total expenditures rose by 1.8 percent year-on-year to CZK 1.761 trillion. This year, the state has exceptionally indexed pensions, increased the minimum subsistence level and various benefits, and contributed to household savings tariffs. However, compared to last year, it has paid less money for anti-epidemic aid.
“November’s budget is traditionally deficit because quarterly tax payments do not boost revenues. Conversely, expenditures are disproportionately burdened by aggregate payments for regional education, renewable energy, and pensions. Government capital spending also tends to accelerate toward the end of the year. Last but not least, EU budget revenues continue to lag behind this year, negatively distorting the deficit by about CZK 21 billion year-on-year,” Stanjura said.
Value-added tax collections rose 16.1 percent year-on-year to CZK 314.2 billion at the end of November. Corporate income tax collections rose 16.4 percent to CZK 121.5 billion.
Personal income tax collections rose by 13.1 percent to CZK 107.4 billion. Excise duty brought CZK 139.9 billion to the budget, up 3.1 percent year-on-year.
On the expenditure side of the budget, current expenditure increased by 1.8 percent year-on-year to CZK 1.613 trillion.
Capital expenditure rose by 1.4 percent year-on-year to CZK 147.3 billion. The state paid out CZK 702.1 billion in social benefits, up 10.6 percent year-on-year. Of this, CZK 537.3 billion went to pensions.
The government initially planned to run a deficit of CZK 280 billion this year. Still, in October, the House of Commons approved an amended budget version with a deficit of CZK 375 billion.
The new budget version assumes total revenues of CZK 1.678 trillion and expenditures of CZK 2.053 trillion.