The Czech Republic is not ready for crises, the SAO warns. He criticizes debts and poor protection

The Czech Republic is not ready for crises, the SAO warns. He criticizes debts and poor protection
The Czech Republic is not ready for crises, the SAO warns. He criticizes debts and poor protection
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According to the controller, real changes that would improve crisis preparedness in practice are only minimal. a number of our inspections, not only from last year, pointed out that we were witnessing only formal steps without concrete results, Vron said at first.

etc. states, among other things, that the steel is not equipped with a system for the protection of soft customs and that the long-neglected state of protection of the population is a weak point.

NK last year came to the conclusion that the population protection system in Rome has deficiencies. According to the inspectors, there are not enough information centers for the people, masks and table covers are missing, with which only 3.2 percent of the population is protected.

However, the Ministry of the Interior then declared the animals of the control as tendentious. According to the interior of the EU, the population protection system in the Czech Republic is considered to be one of the most robust and well-prepared.

The defense was ineffective

Regarding the state’s defense capabilities, the NK found that the Ministry of Defense was not able to provide pensions to others, even though its revenues were repeatedly increasing. The risk also lies in the way the Ministry has recently concluded contracts for the supply of weapons.

Recently, the Ministry of Defense has been carrying out several financial acquisitions, when it concluded contracts without a sum of money with selected foreign governments, or with specific manufacturers. In this case, the NK covers the risk of inefficient and uneconomically spent means, standing in the first place.

Last year, for example, the government decided to buy 24 American F-35 aircraft based on the recommendations of the army. The Czech Republic will pay 150 billion crowns for the collapse of the American manufacturer Lockheed Martin. This is the most expensive Czech military purchase.

In the light of the current security situation, it is necessary to create a path for the deployment of R’s defense capabilities. This, however, must be a conditionally meaningful and effective use of the limited resources that may be available, NK points out.

Note that the Ministry of Defense chapter’s income has doubled in the last five years. At the same time, he pointed out that the income tax must correspond to the ability of the Ministry of Pensions and Economic Exclusion, which the previous inspections did not confirm according to the order.

for example, the insurance of weapons or armor technology. Last year, ad found out that the army did not ensure the planned renewal of military vehicle technology or the material needs of the army in radiation, chemical and biological protection.

and noted that the average number of military vehicles there is 21 years, some of which have been in service for 39 years. The Ministry inefficiently and inefficiently spent on the repair of vehicles with extended service life, in some cases it paid for the repair in excess of the price of a new vehicle, warns ad. Minister of Defense Jana ernochov (ODS) stated last year that ten cars in the army have been destroyed in the last ten years as a result.

The national debt keeps growing

The national debt increased by 216 billion last year and reached 3.111 trillion crowns at the end of the year. Since 2019, expenses for its service have increased by 29 billion to 68.3 billion crowns. The increase in debt increases the burden of future generations, warns NK. He also stated that the type of inflation that is the highest in the European Union has reduced the real income of Czech households.

The results of the NK checks showed that even with the majority of the budget’s income, the rate of indebtedness could not be reduced sufficiently. The state budget ended last year with a deficit of 289 billion, which the NK declares to be very high.

According to the Ministry of Finance (MoF), the national budget for the year was prepared as a deficit due to a significant increase in expenditures in social taxes or investments and external expenditures to compensate for high energy prices, which were not fully covered by external revenues.

As a result, the state budget last year had a deficit of K288.5 billion, i.e. by 6.5 billion Klpa compared to the original plan and 71.9 billion Klpa not in 2022, Stefan Fous from the department of communication of the ministry said.

According to Jureka, the problem is how much NK initially invests in the development of the last two years. The minister pointed to high inflation and the consequent abnormal valorization of income and the payment of allowances for housing and other expenses due to expensive energy and food.

What about NK must be taken very seriously. We owe a whole lot of money to debt, to the debt of future generations. It is time for us, first and foremost, to try to make the state department and activities that secure the state more efficient. It is also about the revision of agendas, said Jureka. He pointed out that at first the NK from the time of the previous governments looked similar. He added that his company is working on tax reform and digitalization.

According to NK, even the tax on non-equilibrium profits did not help balance the economy. The so-called windfall tax was imposed by the state on energy, petrochemical and construction companies and on large banks.

Last year, taxpayers only paid deposits for this tax. He himself collected 39.1 billion crowns in taxes per year. Another 18.5 billion crowns went to the general budget from the levy on excessive income from the manufacture of electronics. The ministry originally expected a total of 100 billion crowns to be collected from both measures.

But NK also points out that the economy and the economy were negatively affected by the ongoing conflict in Ukraine and its related consequences. for example, the rising prices of commodities, especially fuel and energy.

He also stated that the income of the general budget increased by 651 billion over the last five years, but the income by only 391 billion. An increase in income without appreciable improvement in the structural mismatch between total income and income according to the national budget will increase the risk of further indebtedness, NK warns.

The Ministry of Finance agrees with the opinions of the NK in the sense that the consolidation of public finances is necessary. First of all, for this reason, the government pushed through a recovery package last year, which will reduce the deficit of the national budget by 150 billion crowns for the years 2024 and 2025, and for the first time since 2019, thanks to it, R will meet the Maastricht criterion regarding indebtedness in 2024, the department said.

He added that according to the Ministry of Finance’s prediction, the deficit of government institutions in relation to GDP will decrease from 3.6 percent of GDP to 2.2 percent of GDP and should fall below two percent of GDP in 2025 and 2026.

and so on, even though the dog of some effort has not changed in the way it has been established. Thus, it is bogged down in formalism with no way for subsidies to flow where they can really and meaningfully help. In the following, we are talking about an administratively cumbersome, non-transparent and indivisible system, which is difficult not only for the state, but also for the subsidy recipient himself, Vron said at the beginning.

The highest control order is an independent statutory institution that controls the burden of pensions and state assets and is also responsible for the management of the state budget.

The article is in Czech

Tags: Czech Republic ready crises SAO warns criticizes debts poor protection

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