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
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