The Czech government today approved a draft state budget for this year with a deficit of CZK 310 billion, as announced by Finance Minister Alena Schillerova (ANO) on social media.
Last year, the budget finished up with a deficit of CZK 290.7 billion, which was the fourth largest in Czech history and exceeded the originally planned CZK 241 billion.
The government coalition of ANO, Freedom and Direct Democracy (SPD) and the Motorists came up with its own budget after rejecting the original proposal by the previous cabinet of Petr Fiala (ODS), which projected a deficit of CZK 286 billion. Representatives of the current coalition stated that the original proposal had omitted certain expenditures, which the previous government rejected.
Schillerova repeated her criticism of the previous cabinet today, and said the previous budget proposal has been successfully revised. “Gone are the artificially inflated revenues, gone are the missing mandatory expenditures. We are adding CZK 26 billion to transport infrastructure and CZK 17 billion to the mandatory expenditures of the Ministry of Labour and Social Affairs to help people. We are saving 10% on operations,” she said.
Chamber of Deputies Speaker Tomio Okamura (SPD) said MPs should approve the basic parameters of the budget (i.e. the revenues, expenditures and deficit) on 11 February. He expects the final vote on the budget to take place on 11 March.
The Czech Republic is currently operating under a stopgap budget, which limits monthly spending to one-twelfth of last year’s total expenditure. According to analysts, the stopgap budget does not pose a problem for the economy if it lasts only a few months, but if it drags on, it could slow down some investments. The last time the Czech Republic operated under a stopgap budget was after the previous change of government in 2022, when it lasted until March.
Opposition figures have strongly criticised the draft budget as irresponsibly high, and have ruled out supporting the budget in the Chamber of Deputies.
Former TOP 09 finance minister Miroslav Kalousek said the proposed spending exceeds the limits set by the law on budget responsibility. “The government is proposing to spend CZK 73 billion in illegal expenditure at a time of growth and low unemployment, when a good economist reduces deficits, not increases them,” he wrote on social media.
The law on budget responsibility sets a maximum limit on the public deficit. This year, the deficit may reach a maximum of 1.75% of gross domestic product (GDP) according to the law. However, the law does not specify any penalties for violating the rules. Kalousek recalled that the previous coalition government of Petr Fiala (ODS) proposed a 2025 state budget with a deficit of CZK 286 billion, which used an exemption from the rules on expenditure amounting to CZK 49 billion, covering defence spending and loans for the construction of nuclear reactors in Dukovany.
The Mayors and Independents (STAN) said the government has given up on sound finances. “Having a balanced budget and clear rules is not just theory – it’s insurance to keep our country from getting into huge debt. But now the government is doing the exact opposite,” the party wrote on social media.
Chamber Deputy Speaker Jan Skopecek (ODS) said such a deficit is irresponsible and unjustified with the economy expected to grow by 2.4%. He noted that the government coalition of ANO, Freedom and Direct Democracy (SPD) and Motorists plans to reverse the pension system reforms that were intended to ensure its long-term sustainability. “The future that this government is painting for us can be described simply as: debt, debt, debt…” he said.
Christian Democrats (KDU-CSL) leader Marek Vyborny said the government is promising everything to everyone and that future generations will pay for it. “The KDU-CSL will not support this irresponsible budgetary spree,” he said.
