Experts issue warning over gap between incomes and expenditures

The Czech Fiscal Council has warned that the gap between state incomes and expenditures is growing and that there is no sign of a turn towards sustainability on the horizon.

The independent expert body said on Thursday that the imbalance in the Czech public finances is so great that it can only be reined in by raising taxation in conjunction with changing laws that address what are known as mandatory expenditures or define the scope of the state’s activity.

The Council blamed the situation on imprudent steps, particularly in the last two years, and a failure to address the future impact of demographic changes.