PRAGUE, Dec 29 (Reuters) – The Czech central state budget is likely to be in a deeper deficit this year than the 241 billion crowns ($11.71 billion) originally targeted, new Finance Minister Alena Schillerova said.
Schillerova said the deficit had already reached 266 billion crowns when she took office on December 15 and grew to 275 billion crowns four days later.
“Meeting the planned deficit is unlikely,” she said on Saturday in a post on X social media platform.
This year’s deficit in the state budget – which makes up the bulk of the overall fiscal balance – had been expected to fall from 271.4 billion crowns posted in 2024.
A new government, led by billionaire Andrej Babis, whose populist ANO party won an October election with promises to raise wages and boost spending, took office this month.
Analysts expect some fiscal loosening after the previous centre-right government had cut the country’s overall fiscal gap to well below 3% of gross domestic product, meeting European Union rules.
Babis’ government has also set out to rework the 2026 budget plan, saying the previous administration’s draft lacked some necessary expenditure, indicating the deficit next year would be above the previously proposed 286 billion crowns.
Schillerova has said the government should approve a reworked draft in the second half of January.
($1 = 20.5770 Czech crowns)
(Reporting by Jason Hovet; Editing by Jan Harvey)
Comments