Government approves 500 billion crown deficit

09-06-2020

The government has approved a proposal to increase this year's state deficit to 500 billion crowns in view of the additional expenditures relating to the coronavirus crisis. It is the third increase in the budget deficit proposed since the start of the coronavirus crisis.

In April the Chamber of Deputies agreed to increase the 2020 deficit to 300 billion crowns. Prior to the pandemic the budget deficit was projected at 40 billion crowns.

The proposal is to be debated by the lower house on June 16 in a state of legislative emergency. Finance Minister Alena Schillerová said it would definitely be the last increase proposed, but added that she expects large budget deficits in the years to come as well.

So far the country’s highest state deficit was 192 billion crowns in 2009 due to the global economic recession.