Czech Government Proposes 389 Billion Crown Budget Deficit for 2027

The Czech Finance Ministry plans to propose a central government budget deficit of 389 billion crowns ($18.71 billion) for 2027, according to the government’s budget outline on Aug. 31. The proposed shortfall would be higher than the 310 billion crowns planned for this year.

If approved at that level, the 2027 deficit would be the second-largest in Czech history. It would be exceeded only by the 419.7 billion crown deficit recorded in 2021 during the COVID-19 pandemic.

The proposal allocates 2.0% of gross domestic product to the Defence Ministry, meeting NATO’s minimum spending requirement. It also calls for increased investment spending and higher healthcare expenditures.

Public-sector wages would rise between 5% and 9% under the plan. The government also intends to increase spending on road and rail infrastructure projects.

Opposition parties have criticized the proposed deficit as irresponsible. They warned that it could lead to higher interest rates on state debt and a decrease in citizens’ standard of living.

The figures concern the central government budget and remain a proposal. The research material does not specify the date of a final budget decision or provide further details on the timetable for its approval.