Czech Fiscal Council study says budgetary plans ‘unambitious’ compared to other EU states
A new study by the Czech Fiscal Council (NRR) on the long-term sustainability of public finances indicates that government plans to trim the budget deficit after record spending due to the pandemic fall short compared to those of other EU countries.
The Ministry of Finance has said it envisages a gradual statutory consolidation plan, namely a reduction in the structural balance of half a percentage point of GDP per year.
According to the Czech Fiscal Council, overall, the Czech Republic is relatively “unambitious compared to other EU countries on both the revenue and expenditure side of public budgets, deviating mainly in the area of taxes.”
The independent expert body’s main mission is to evaluate whether state and public institutions are complying with budgetary responsibility rules. It findings serve as inputs for public authorities to plan and implement fiscal and budgetary policies.