Czech budget gap widens 1.9% y/y in Jan-Nov but well below end-year target.

By bne IntelliNews December 3, 2013

The Czech central budget deficit widened by 1.9% on the year to CZK 79.4bn (EUR 2.9bn) in the first 11 months of 2013, data from the finance ministry showed. The gap accounted for 79.4% of the full-year target suggesting that the government is on rack to beat the end-year deficit target of CZK 100bn. The deficit widened from CZK 47.7bn at end-October.

Total budget revenue in Jan-Nov edged up by 0.4% y/y to CZK 965.5bn, accounting for 88.3% of the annual target. Revenue from taxes increased by 1.5% y/y to CZK 489.4bn with VAT collection improving by a strong 10.6% y/y to CZK 202.2bn, while excise taxes declined by 3.9% y/y. The rise in VAT revenue was partially thanks to a 1pp rise in both VAT rates as of Jan 1. 

Budget expenditures ticked higher by 0.5% to CZK 1.04tn as of end-Nov, equalling to 87.6% of the annual plan.

In November alone, the budget produced a deficit of CZK 31.7bn, slightly up from a gap of CZK 26.6bn in the same month of 2012.

The government expects this year’s budget deficit to be smaller than the approved CZK 100bn thanks to higher inflows from the EU and better-than-expected VAT collection. In its latest macroeconomic forecast published in October, the finance ministry said it projects this year’s public sector deficit that includes the central government budget, regional and local budgets, public funds and public health insurance, to account for 2.9% of GDP and stay at that level in 2014. 

Central budget (CZK bn)          
  Jan-Nov 2013 Jan-Nov 2012 Change (%, y/y) 2013 adjusted budget plan Relation to plan
Revenues 965,48 961,34 0,4% 1 093,09 88,3%
Tax revenues (without contributions) 489,42 482,14 1,5% 554,23 88,3%
VAT 202,16 182,74 10,6% 212,00 95,4%
Excise tax 122,53 127,44 -3,9% 142,2 86,2%
Social and health insurance 337,94 338,12 -0,1% 377,77 89,5%
Expenditure 1 044,84 1 039,21 0,5% 1 193,09 87,6%
Social benefits 441,6 437,06 1,0% 489,6 90,2%
Pensions 343,66 346,38 -0,8% 382,41 89,9%
Own payments to EU budget 34,88 32,6 7,0% 36,16 96,5%
Capital expenditures 80,82 100,48 -19,6% 109,15 74,0%
Balance -79,37 -77,87 1,9% -100,00 79,4%
Source: Finance ministry

Related Articles

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Czech-based CME divests Croatian Nova TV and Slovenian Pop TV for €230mn

Czech Republic-based broadcaster Central European Media Enterprises (CME) on July 10 announced the divestiture of its leading Croatian and Slovenian TV stations to United Group's Slovenia Broadband ... more

Central European and Baltic economies shrugging off political uncertainty

Medium-term economic growth forecasts for Central Europe and the Baltics have been raised by The Vienna Institute for International Economic Studies (wiiw) in a report issued on June 29. The most ... more

Dismiss