State budget deficit expected to fall below 200 billion CZK by 2027

The Czech state budget deficit is projected to decrease steadily in the coming years, falling below 200 billion CZK by 2027, according to the Ministry of Finance's mid-term outlook. The deficit for 2024 is expected to be 230 billion CZK, down from the planned 252 billion CZK this year. By 2026, the deficit should reduce to 225 billion CZK, and further to 180 billion CZK by 2027. The ministry also anticipates a gradual decline in the public sector deficit relative to GDP, alongside a rise in public debt and increased debt servicing costs.