In an exceptional financial update, Czech municipalities, regions, and voluntary associations of municipalities have reported an unprecedented surplus of 77.3 billion korunas for the first three quarters of the year. The data, released by the Ministry of Finance, reveals a remarkable 28.1 percent increase compared to the previous year, marking the most robust financial performance since 2013.

Individual breakdowns showcase the outstanding financial stability and management of local governments, with municipalities reporting a surplus of 55.2 billion korunas and regions achieving an excess of 21.5 billion korunas. This noteworthy economic performance underscores the resilience and prudent fiscal practices adopted by Czech municipalities and regions.

Total revenues from territorial budgets reached 644.9 billion korunas by the end of September, reflecting a substantial year-on-year increase of 14.5 percent. Notably, tax revenues experienced a significant uptick, registering a 15.9 percent increase to reach 333.8 billion korunas over the first three quarters.

Expenditures from territorial budgets amounted to 567.6 billion korunas, marking a 12.9 percent increase compared to the corresponding period in the previous year. Current expenses accounted for 463.1 billion korunas, while capital expenses or investments stood at 104.5 billion korunas.

In a notable demonstration of the Czech government’s commitment to humanitarian efforts, territorial budgets allocated 5.8 billion korunas to assist refugees from Ukraine. This multifaceted report not only underscores the robust economic performance of the Czech Republic but also exemplifies its dedication to the well-being of its residents and its role in providing support to those seeking refuge within its borders.

Article by Prague Forum