Czech budget ends January with EUR 1.6bn surplus on EU funds influx.

By bne IntelliNews February 3, 2014

The Czech central budget ended January 2014 with a surplus of CZK 45.1bn (EUR 1.6bn), or by 6.2% higher than the year-ago figure mainly thanks to influx of EU funds, data from the finance ministry showed.

Total budget revenue in the first month of the year grew 3.2% y/y to CZK 129bn, accounting for 11.7% of the annual target. Revenue from taxes edged up 0.2% y/y to CZK 69bn with VAT collection deteriorating 7.4% y/y to CZK 32bn, while excise taxes jumping 14.8% y/y to CZK 24.7bn in January 2014. Income from the EU increased by CZK 4.4bn in the period.

Budget expenditures were 1.6% higher on the year at CZK 83.95bn as of end-January, equalling to 6.9% of the annual plan.

The 2014 budget plan envisages a CZK 112bn budget deficit. The Czech budget ended 2013 with a deficit of CZK 80.9bn beating the government’s target of CZK 100bn thanks mainly to lower-than-planned spending. Newly-appointed finance minister Andrej Babis said over the weekend that he will submit a proposal to the government to cut this year's budget deficit by CZK 5bn (EUR 182mn) to CZK 107bn.​

In its latest macroeconomic forecast published in January, the finance ministry said it projects 2014 public sector deficit that includes the central government budget, regional and local budgets, public funds and public health insurance, to widen to 2.7% of GDP from an estimated 2.5% in 2013.

Central budget (CZK bn)          
  Jan 2014 Jan 2013 Change (%, y/y) 2014 budget plan Relation to plan
Revenues 129,00 125,02 3,2% 1 099,31 11,7%
Tax revenues (without contributions) 69,00 68,83 0,2% 562,54 12,3%
VAT 31,99 34,56 -7,4% 218,7 14,6%
Excise tax 24,67 21,49 14,8% 139,4 17,7%
Social and health insurance 31,09 30,69 1,3% 382,88 8,1%
Expenditure 83,95 82,6 1,6% 1 211,31 6,9%
Social benefits 35,56 36,38 -2,3% 502,77 7,1%
Pensions 26,48 27,62 -4,1% 387,37 6,8%
Own payments to EU budget 3,72 3,91 -4,9% 36,4 10,2%
Capital expenditures 1,12 1,25 -10,4% 82,8 1,4%
Balance 45,05 42,42 6,2% -112,00 -40,2%
Source: Finance ministry

Related Articles

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

CEZ ignores Czech finance minister and re-elects CEO

The supervisory board at Czech power group CEZ ignored pressure from the finance ministry to dump the current management, local media report. Finance Minister Andrej Babis has been accumulating ... more

Japan’s Asahi buys a huge round in Central Europe

Asahi has beaten a host of regional heavyweights in the race to buy SABMiller’s Central and Eastern European beer brands, the Japanese brewer announced on December 13. The Asian giant said it ... 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