Economists say projected 2021 deficit not final

Economists have welcomed the approval of the 2021 state budget by the lower house on Friday meaning that the country will avoid operating on a provisional budget.

However they say that the budget, with its projected deficit of 320 billion crowns, is based on unrealistic expectations in terms of projected revenues, mainly due to the effects of the tax package approved.

They predict that the government will be forced to present an amendment increasing the deficit in the course of the year.

The ruling parties ANO and the Social Democrats pushed the budged through the lower house on Friday with support from the Communist Party.  It was approved by 56 out of 156 deputies present.