Lower house debating proposed increase in state deficit to record 500 billion crowns

The lower house is debating a proposed increase in this year's state deficit to 500 billion crowns in view of additional expenditures relating to the coronavirus crisis. It is the third increase in the budget deficit proposed since the start of the pandemic.

In April the Chamber of Deputies agreed to increase the 2020 deficit to 300 billion crowns. Prior to the pandemic, the budget deficit was projected at 40 billion crowns. The government wants the proposal is to be debated by the lower house in a state of legislative emergency. So far the country’s highest state deficit was 192 billion crowns in 2009 due to the global economic recession.

The Communist Party, which tolerates the minority ANO-Social Democrat coalition government, said on Tuesday it plans to negotiate a change in tax rates this autumn, a year before the next elections to the lower house.