Government wants to improve public finances by boosting economic growth

The government wants to improve public finances by strengthening economic growth. According to Finance Minister Alena Schillerová, this should be supported by reducing the grey economy and promoting innovation. This year’s state budget deficit is expected to reach 310 billion crowns. According to the Finance Ministry’s April forecast, this will amount to 2.6 percent of GDP, compared to 2.1 percent last year.

According to Schillerová, faster GDP growth increases state revenues in the long term, unlike tax increases, which have only a one-off effect. She described limiting the grey economy as one of the key steps to support growth. In her view, restoring electronic sales registration should help achieve this. The government also wants to support high value-added innovation, which subsequently leads to higher productivity and wages.