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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