2020 Czech budget deficit largest in country’s history
The Czech Republic’s budget deficit for the year 2020 was CZK 367.4 billion, Finance Minister Alena Schillerová announced on Tuesday. Expenses used for combating the coronavirus pandemic reached CZK 216.5 billion. The government also increased investments which were worth CZK 173 billion, a rise by CZK 34 billion when compared to 2019.
It is the largest deficit reached in the years since the establishment of the Czech Republic. However, the deficit was still lower than the maximum of CZK 500 billion approved by Parliament.
Analysts questioned by the Czech News Agency said that the budget deficit for 2021 could be even higher than that of the previous year depending on the development of the COVID-19 pandemic. The government’s new tax legislation, which ends the super-gross wage, will also decrease state income, they say.