Finance Ministry sends new budget proposal to government, cutting projected deficit slightly

The Czech Ministry of Finance has decreased its forecasted budget deficit for next year by CZK 13.4 billion to CZK 376.6 billion, according to a new proposal sent by the ministry to the government.

Compared with the previous June plan, the state’s projected income for next year was raised by CZK 57.6 billion to a total of CZK 1.543 trillion. Meanwhile, expenditures rose by CZK 44.2 billion to a total of CZK 1.919 trillion.

Finance Minister Alena Schillerova said that the budget proposal prioritises savings in state administration as well as a record level of investments worth CZK 218 billion. Further priorities include raising pensions by CZK 797 and supporting research and development projects.

The budget first has to be approved by the government after which it will be sent to the Chamber of Deputies. It is not expected that the lower-house will have the time to approve the budget before the elections in early-October.

Deputy Chairman of the opposition Civic Democrats Zbyněk Stanjura said that the proposal is scandalous, as it counts on an even higher deficit than in 2020.