Czech budget could finish 2016 in balance suggests finance minister

By bne IntelliNews September 12, 2016

The Czech budget deficit has a chance to be cut to zero this year, Finance Minister Andrj Babis suggested on September 12.

This year’s budget targets a deficit of CZK70bn (€2.6bn). Finance ministry data, however, has seen the budget posting record surpluses over the past few months. Babis, who recently pushed through a fiercely contested bill to introduce electronic cash registers, credits improved tax collection as the main factor behind the strong revenue growth that is driving the positive balance higher.

The budget produced a surplus of CZK81.2bn as of the end of August, a significant improvement in annual terms from the CZK19bn at which it stood at the end of August 2015. That said, expenditures tend to rise in the closing months of the year, offering the potential to once again force the balance into negative figures. However, estimates still put this year’s deficit well below target at CZK30bn.

Babis, however, suggested a balanced budget might be achieved. “Maybe we can achieve a balanced budget this year, I'll do it to the maximum,” Babis told Tyden weekly in an interview.

The government will meet on September 12 to debate next year’s budget, which currently targets a deficit of CZK60bn. Budget expenditures are projected at CZK1.305tn, above the CZK1.251tn approved for 2016. Revenues are set to increase to CZK1.245tn from CZK1.181tn. 

Related Articles

Hungary finally joins the negative yield club

Hungary finally joined the negative yield club on March 21 as Government Debt Management Agency AKK  accepted a bid of -0.01% at an auction of 3-month T-bills. Hungarian yields have been on ... more

S&P improves Russia's outlook to Positive

Standard & Poor's improved the outlook on Russia's sovereign ratings from Stable to Positive, while affirming the 'BB+/B' foreign currency rating and 'BBB-/A-3' local currency rating, the agency ... more

IMF delays new $1bn tranche to Ukraine due to Donbas blockade

Ukraine's main donor, the International Monetary Fund (IMF), has cancelled a board meeting scheduled for March 20 that was expected to see the release of a $1bn tranche to Ukraine, while demanding ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss