Czech government approves 2027 budget with CZK 386 billion deficit

Czech government ministers on Monday approved the draft state budget for next year, with the deficit set at CZK 386 billion, three billion crowns lower than originally planned. Despite the reduction, it will still be the second-largest budget deficit since the Czech Republic became independent.

Prime Minister Andrej Babiš (ANO) said the cabinet approved the budget unanimously and he expects all 108 coalition MPs to support the draft when it is debated in the Chamber of Deputies.

According to Finance Minister Alena Schillerová, the government confirmed the main priorities already outlined in the Finance Ministry’s original draft. She said the budget focuses on investment and the development of healthcare. The budget also envisages public-sector pay rises of between five and nine percent.