New Czech budget to focus on pensions, wages and innovation

The Czech government has approved the country’s budget for 2020, promising increases in pensions, teachers’ wages, parental benefits and higher spending on research and development and on sports and investments.

“The proposed budget will enable the government to continue to pay off the debts of past governments,” said the country’s minister of finance, Alena Schillerová. “Priority is also given to investments in transportation, infrastructure, education, but also in science and research. Despite a slight slowdown in the economy, we do not expect an increase in the deficit next year, also thanks to savings in operational and personnel areas.”

The 2020 budget bill’s mandatory expenditures reach 34 billion euros, with 1.8 billion destined for research, development and innovation. Teachers’ salaries will increase by 10 per cent, while expenditure on pensions will reach 19,6 billion euros. There will also be an increase in defence spending, set to reach 1.5 per cent of GDP by 2022.

The draft was welcomed by workers’ unions which claim it will boost the economic growth and ensure economic stability