Lower house approves controversial defence spending exemption

The Czech government will likely be allowed to increase defence spending above approved budget limits until 2036 under a disputed amendment passed by the lower house on Thursday. Defence spending above two percent of GDP would no longer count towards official expenditure ceilings.

The amendment would also allow the government to raise spending on major strategic infrastructure projects. The proposal, put forward by Finance Minister Alena Schillerová, will now go to the Senate.

Opposition parties say the changes weaken budget responsibility rules and could lead to uncontrolled government spending and rising state debt. They also object to provisions allowing the government in some cases to adjust the budget without parliamentary approval and say they plan to challenge the law at the Constitutional Court.