Czech budget gap widens as revenues fall behind spending

Czech public finances have seen a growing imbalance since 2019, with revenues falling in real terms by CZK 100 billion while expenditures increased by CZK 200 billion, according to a new analysis by the Centre for Public Finance. Economist Tomáš Holub said the country had relatively stable finances in 2019, but the gap between income and spending has since widened. The trend was driven by the Covid-19 pandemic, the energy crisis, and tax changes such as the abolition of the super-gross wage, which reduced personal income tax. Recent consolidation efforts have only partly