Czech government to submit 2027 budget with reduced deficit

The Czech government is expected to send its draft state budget for 2027 to the lower house on Monday. Following coalition negotiations, the proposed deficit is expected to be reduced by around three billion crowns from the original CZK 389 billion proposed by Finance Minister Alena Schillerová (ANO). Despite the reduction, it would still be the second-largest budget deficit since the establishment of the Czech Republic. The coalition has not specified where spending will be cut or revenues increased. Opposition parties and the National Budget Council have criticised the year-on-year rise in the deficit, arguing that it partly finances routine government spending.