Czech budget surplus widens to EUR 162.3mn in July 2014 on strong tax revenue growth

By bne IntelliNews August 4, 2014

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
Revenues 670,26 629,88 6,4% 1 104,67 60,7%
Tax revenues (without contributions) 331,68 306 8,4% 562,54 59,0%
VAT 137,61 127,07 8,3% 218,70 62,9%
Excise tax 78,83 73,49 7,3% 139,40 56,5%
Social and health insurance 220,79 214,83 2,8% 382,88 57,0%
Expenditure 665,77 657,45 1,3% 1 216,68 54,7%
Social benefits 283,52 276,02 2,7% 502,76 56,4%
Pensions 218,41 214,98 1,6% 387,37 56,4%
Own payments to EU budget 26,41 26,05 1,4% 36,40 72,6%
Capital expenditures 41,62 42,1 -1,1% 88,51 47,0%
Balance 4,49 -27,56 -116,3 -112 -4,0%
Source: Finance ministry

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