Finance minister says 2022 budget deficit should not exceed 280 billion crowns

The state budget deficit for 2022 should be below 280 billion crowns, Finance Minister Zbyněk Stanjura said in a debate on Czech Television on Sunday. The target is 100 billion crowns less than that envisioned by the former government of Andrej Babiš.

Mr. Stanjura said he was counting on an increase in revenues by more than 61 billion crowns compared to the original projections. According to Stanjura, roughly half of these funds should be used by the government to reduce the budget deficit. Another roughly 30 billion crowns should cover inflation expenditures, especially the planned valorisation of pensions, as well as higher expenditures in sickness or housing allowances.

He said cuts would have to be made in state administration, including reducing the number of civil servants and advancing digitization. The country is currently operating on a provisional budget.