Czech budget deficit lowest in five years

The Czech state budget deficit decreased to less than 176 billion CZK by the end of August, down from 192.3 billion CZK in July, according to the Ministry of Finance. This marks the best budget performance in five years, though it remains the fifth-highest deficit in the country’s history. The improvement is attributed to higher tax revenues and stagnant overall spending. Finance Minister Zbyněk Stanjura (Civic Democratic Party) expressed confidence that the government would meet the planned annual deficit of 252 billion CZK, provided responsible spending continues. Social benefits and debt servicing were the largest expenditure categories.