Finance ministry strategy seeks to boost growth by increasing deficit in next three years

The Czech budget deficit should gradually decrease from this year’s planned 6.4 percent to 3.6 percent in 2023. Meanwhile, government debt will grow from the 39.4 percent of GDP planned for this year, to 47.4 percent in 2023, according to a new consolidation strategy sent by the Ministry of Finance to members of the Czech lower-house.

The plan seeks to boost the growth of the Czech economy which is expected to contract by 6.6 percent this year. In 2021, the ministry hopes to see the country’s economy grow by 3.9 percent, followed by 2.2 percent and 2.1 percent in the subsequent two years.

The consolidation strategy was requested by the Chamber of Deputies as a condition for approving this year’s massive budget deficit of CZK 500 billion.