Audit Office: Czechia struggling to stabilize public finances as debt continues to rise

The Czech Republic is struggling to stabilize its public finances, with government debt continuing to grow at an accelerating pace, the Supreme Audit Office (NKÚ) warned in its annual report for 2025, released on Monday. Despite an economic recovery last year, state expenditures are increasing faster than revenues, pushing the national debt close to 3.7 trillion crowns, the report said.

The Office says that due to a high share of mandatory spending, the government will have limited ability to respond to future crises. According to statistics mandatory and quasi-mandatory expenditures accounted for an alarming 86.3 percent of total budget revenues last year. At the same time, the state paid 98 billion crowns in debt servicing costs -a figure expected to rise further as deficit spending continues.