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

Hungarian PM's "proxy" moves into the nuclear industry as Paks tenders approach

Firms controlled by Hungarian oligarch Lorinc Meszaros have purchased a 51% stake in the Hungarian subsidiary of Czech nuclear ... more

Czech PM accepts new nominee for finance minister

Reducing the political tension in the country a little, Czech Prime Minister Bohuslav Sobotka accepted on May 17 the nomination of a new finance minister from coalition partner Ano. Meanwhile, ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... 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