The Budget Council will publish a regular report on the state of public finances

Updates: 02.12.2021 00:53

Prague – The National Budget Council will today publish a regular quarterly report on the state of public finances and budgetary policy. In its latest report in September, the Council stated that the Czech Republic would have achieved the so-called debt brake later in 2024, in the current economic development and the Ministry of Finance’s plans for consolidating public finances, by about two to three years. In a previous June report, the council warned that a debt brake of 55 percent of gross domestic product (GDP) was imminent in 2024. After overcoming it, the government must submit a proposal for a balanced or surplus state budget and funds. At the same time, however, the Council pointed out that public finances remained in imbalance.

Since the September report, the Ministry of Finance has further improved its estimate of public finances. According to the November Ministry of Finance’s forecast, total public debt should rise from last year’s 37.7 percent of GDP to 43.3 percent of GDP this year. It is expected to rise to 46.2 percent in 2022 and to grow to 51.3 percent of GDP in 2024. In August, the MoF’s August estimates, on which the Budget Council based its previous opinion, assumed a debt of 51 .8 percent of GDP. The development of public finances and the structural deficit, which is a deficit-adjusted public finance deficit, awaits the Ministry of Finance, which is more favorable than the August estimates. At the same time, financial institutions, economists, the Czech National Bank and the Ministry of Finance are gradually worsening the estimate of the development of the Czech economy.

Source: České noviny – hlavní události by

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