The Czech state budget for 2024 shows a deficit of CZK 271.4 billion, an improvement of CZK 10.6 billion compared to the initial plan. Despite challenging economic conditions and additional expenditure due to flood damage, the government under Prime Minister Petr Fiala managed to reduce the deficit by CZK 17.1 billion compared to the previous year.
The Czech state budget for 2024 saw a decrease in the deficit by CZK 17.1 billion compared to the previous year, reaching CZK 271.4 billion. Compared to the approved deficit level, the budget showed a CZK 10.6 billion better result. For the third consecutive year, Prime Minister Petr Fiala’s government not only met the planned deficit but also reduced it compared to the approved proposal. The improvement in the balance compared to the previous year reflects increased tax revenue and a moderate rise in total expenditure.
Budget revenues were CZK 5.2 billion higher than planned, with tax revenues exceeding expectations by CZK 8.3 billion, and net tax revenues, excluding social security contributions, exceeding the target by CZK 11.9 billion. For example, revenues from income tax, excise duties on mineral oils, and gambling taxes were higher than anticipated.
On the expenditure side, total and current expenditures were several billion below the statutory limit, while capital expenditure reached CZK 210 billion, exceeding the government’s original plan by CZK 25.5 billion.
“We took over the government at a time when our country was rapidly falling into debt, almost the fastest in Europe. We had to begin reorganizing public finances immediately after our appointment. Despite the numerous crises we faced, we managed to make the necessary savings while ensuring record investments in roads, motorways, railways, defence, and education. Our approach and budget results over the last three years show that budgetary discipline can be combined with strategic investments,” said Prime Minister Petr Fiala regarding the results of the recently concluded financial year.
“We correctly assessed the economic situation in advance, maintained moderation in current spending, fulfilled our budget commitments for the year, including in education, defence, and social spending, and also invested extensively while addressing the damage caused by the floods,” added Finance Minister Zbyněk Stanjura.
The catastrophic floods in mid-September last year led to an amendment of the 2024 budget in early October, increasing it by CZK 30 billion to cover the damage. This revision raised the approved budget deficit to CZK 282 billion. The additional funds were primarily allocated to rebuilding transport infrastructure, supporting households affected by the floods, and restoring water supply and sewerage networks.
