The Ministry of Finance in the Czech Republic reports an increase in the state budget deficit, reaching 269.1 billion CZK in November, compared to 210.7 billion CZK in October. Despite the deepening deficit, the ministry remains confident that the government will stay within the approved budget deficit target of 295 billion CZK for the entire year.

November traditionally presents challenges for the state budget, with Zbyněk Stanjura, the Minister of Finance, explaining that the month lacks significant revenue inflows due to the absence of quarterly tax collections, such as income taxes or payments from quarterly VAT contributors. On the expenditure side, regular outflows include advances on regional education and subsidies for renewable energy sources.

The end of the year typically witnesses an acceleration in investment expenditures. Stanjura notes that November saw the highest payout this year, amounting to 24.8 billion CZK. He adds that investment fulfillment has already reached 180 billion CZK out of the planned 210 billion CZK.

As of the end of November, budget revenues reached 1.719 trillion CZK, marking a 21 percent year-on-year increase. However, expenditures for the first eleven months totaled 1.988 trillion CZK, representing a 13 percent increase compared to the previous year.

In the corresponding period of the previous year, the state operated with a deficit of 337.1 billion CZK. The ministry attributes the year-on-year improvement of 68 billion CZK to increased revenues from the European Union, dividends from the ČEZ company, and a substantial collection from corporate income tax.

Looking ahead to December, Stanjura anticipates high state revenues. Corporate tax quarterly advances, another advance on tax from unexpected profits, and insurance collections for social security are expected in December. The Minister expresses confidence that the government will stay within the planned deficit target of a maximum of 295 billion CZK for the entire year.

Article by Prague Forum