Czech Budget Deficit Hit Record High in 2021

Budget Deficit

The Czech central state budget showed a 419.7 billion crown deficit at the end of 2021, Finance Ministry data showed on Thursday.

It is the largest deficit in the modern history of the Czech Republic, surpassing the CZK 367.4 billion deficit registered in 2020. However, it is still below the CZK 500 billion ceiling approved by Parliament.

Adjusted for funds from the EU, the end-December budget would show a deficit of 408.4 billion crowns, versus 364.9 billion crowns deficit in the previous year.

Overall expenditure rose 3.5% while income was up 0.8% in 2021.

Since the start of the year, the Czech Republic has been on a provisional budget, which is expected to last until the end of March. This is because the Chamber of Deputies failed to approve the draft state budget for 2022 by the end of last year.

The central budget is the main part of the EU country’s overall public sector finances, which also include local and regional administrations, the health insurance system and various off-budget funds.

The ministry has forecast the 2021 public sector deficit at 7.2% of gross domestic product. For 2022, the public gap is estimated at 4.4% of GDP.

 

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