Government approves state budget for 2026

The government of Prime Minister Andrej Babiš (ANO) has approved the state budget for 2026, with a deficit of 310 billion crowns. The three-party-coalition of ANO, SPD and Motorists, which took office in mid-December,  reworked a draft prepared by the previous cabinet.

Finance Minister Alena Schillerová (ANO) argued that the high deficit exceeding 300 billion crowns, is inevitable due to poor financing on the part of the former government, which she claims presented a draft lacking roughly 96 billion crowns in expenditures.

The Czech Republic is currently operating under a provisional budget.

Last year, the budget ended with a deficit of 290.7 billion crowns. It was the fourth-largest deficit in Czech history and exceeded the originally planned shortfall of 241 billion crowns.