News & Analysis

ING: Czech state budget weakest since 2015

The Czech state budget ended the third quarter of 2019 with a deficit of 21 billion crowns (815 million euros), compared to a surplus of 17 billion crowns (660 million euros) last year. According to ING bank, it is the weakest since 2015.

Total revenues remain below expectations in 2019. Employment incomes, tax revenues and social security are also gradually lagging behind expectations. And although corporate taxes have begun to generate higher revenues, they will probably end below the budget.

On the other hand, expenditures are growing faster than expected, but according to the Ministry of Finance, this is due to some expenditures that have already been paid prematurely.

However, the overall result of the public sector could end this year with a slightly positive result (0.3 per cent GDP compared to a 0.9 per cent of 2018) thanks to the performance of regions, towns and municipalities.