Lower house approves 2021 state budget deficit

The Chamber of Deputies approved an increase in this year’s budget deficit to CZK 500 billion under a fast-track procedure on Thursday evening. Originally, the deficit was projected at 320 billion crowns.

The increase will cover a fall out in revenues stemming from lower income tax for low and medium wage earners and additional coronavirus expenditures. The budget envisages revenues of CZK 1.39 trillion and expenditures of CZK 1.89 trillion.

The draft was passed by 93 votes from the ruling ANO party and the Social Democrats, as well as the Communist Party. The opposition criticized the increase as “overly generous”. The proposal is now set to be signed into law by President Miloš Zeman.