Czech Republic starts 2022 on provisional budget

The Czech Republic has started the New Year on a provisional budget, which is expected to last until the end of March. This is because the Chamber of Deputies failed to approve the draft state budget for 2022 by the end of last year.

The outgoing government of Andrej Babiš proposed a deficit of 377 billion crowns, but the new cabinet wants to reduce the deficit to below 300 billion crowns by cutting state expenditures. It says it will not increase taxes.

Ministers have been given until mid-January to propose cuts in their individual budgets. The government has already approved a year-long freeze on the salaries of state employees.