The first quarter of this year was the highest in history for the Czech Republic reaching an astonishing 44 billion czk. The Ministry of Finance reported that the growth in revenue from taxes and transfers from the EU have contributed to this. In the first quarter for 2016 total budget revenue reached 342 billion czk with outgoings of 299 billion.
The cash transfers from the EU have risen by over 19% to total 78.8 billion which has been said due to funds being restricted from the EU between 2007 and 2013.
“If the state wanted, it could in my view achieve a better balance than the CZK 70 billion that it reckoned with at the start of the year.”
Jan Bureš- Chief Economist of Poštovní Spořitelna
The record high however does not mean that a high balance will continue through to December as explained below;
“As we learned this morning, the state budget as a whole operated for the entirety of last year with a deficit of only 0.4 percent of gross domestic product. This year I would expect the opposite – that the deficit of the entire state budget, not just of central government, will grow in comparison with last year.”
Pavel Sobíšek- Economist at UniCredit Bank.