On Monday, President Petr Pavel signed the law on the state budget for next year with a deficit of 252 billion crowns. Compared to this year’s approved deficit, it is 43 billion crowns less. The Castle’s communication department informed about it.
This is the first state budget that Pavel has signed in his presidential capacity, and the third budget that has been pushed through by the coalition government of Petr Fiala (ODS). The House approved it on November 29.
Planned budget revenues will increase by 12 billion to 1.94 trillion crowns compared to this year. Planned expenditures, on the other hand, will fall by 31 billion to 2.19 trillion crowns. The budget is based on the assumption of economic growth of 2.3 percent. Household consumption should also grow, which should be supported by the renewed increase in real incomes. The average rate of inflation should fall from this year’s 10.9 to 2.8 percent.