National Budget Council: High Public Deficit Not Related Only To Coronavirus
In its regular quarterly report, the National Budget Council (NRR) warns that the current unprecedented high deficit in the public finances is a result of governmental spending and structural factors rather than anti-covid measures. Photo Credit: KK / BD.
Czech Rep., Sep 2 (BD) – “The public finances are in significant structural imbalance, which is not predominantly due to the exceptional measures undertaken in relation to the COVID-19 crisis, but by lasting changes in tax and expenditure policy settings,” said the NRR report.
“The development of the state budget confirms the slowing of the growth of the deficit compared to the spring months. It can therefore be assumed that the state budget deficit should be lower than the previously approved CZK 500 billion,” NRR added.
The current version of the draft state budget for 2022 envisages a deficit of CZK 377 billion, with a significant increase in expected revenues being offset by further expenditure growth.