The Czech central budget surplus widened to CZK 4.49bn (EUR 162.3mn) in the first seven months of 2014 from CZK 1.45bn (EUR 162.3mn) as of end-June 2014 with revenues rising much faster than spending, data from the finance ministry showed. The reading improved also from end-July 2013 when the budget ended with a deficit of CZK 27.56bn. This year’s budget envisages a deficit of CZK 112bn but except for May the budget has been posting surpluses suggesting the end-year reading may be below the plan.
Total budget revenue in the first seven months of the year grew 6.4% y/y to CZK 670.3, accounting for 60.7% of the annual target. Revenue from taxes jumped by 8.4% y/y to CZK 331.7bn with VAT collection improving by 8.3% y/y to CZK 137.6bn and excise taxes climbing 7.3% y/y to CZK 78.8bn in January to July 2014.
Budget expenditures ticked higher by 1.3% on the year to CZK 665.8bn as of end-July, equalling to 54.7% of the annual plan. Social benefits that make up about two fifths of all expenditures approved for this year increased by 2.7% y/y to CZK 283.5bn.
In July alone, the budget produced a surplus of CZK 3bn, slightly down from CZK 4bn registered in the same month of 2013.
|Central budget (CZK bn)|
|End-July 2014||End-July 2013||Change (%, y/y)||2014 adjusted budget plan||Relation to plan|
|Tax revenues (without contributions)||331,68||306||8,4%||562,54||59,0%|
|Social and health insurance||220,79||214,83||2,8%||382,88||57,0%|
|Own payments to EU budget||26,41||26,05||1,4%||36,40||72,6%|
|Source: Finance ministry|
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