MPs approve 2022 state budget deficit of CZK 375 billion

The Czech lower house has voted to increase the state budget deficit for this year to CZK 375 billion. The approved deficit was due to be CZK 280 billion until the government proposed raising it to CZK 330 billion – before again increasing the amount.

This follows the earmarking of CZK 38 billion to help households and companies deal with high energy prices; the remaining difference is to cover social benefits.

Prime Minister Petr Fiala said the increase in the deficit was justified as the 2022 budget had been drawn up before the consequences of Russia’s war on Ukraine were known.