“The budget results already reflect the beginning of economic recovery accompanied by wage growth. Income tax collection shows double-digit increases, and VAT income is also stronger than last year. After all, a similar picture is illustrated by data on the development of the economy for the first quarter, where domestic consumption was the main source of current GDP growth,” said Finance Minister Zbyněk Stanjura (ODS).
Strong increases in tax collection and income from social insurance – mainly due to this, at the end of April, state budget revenues were up by 10.9 percent year-on-year, or by CZK 58 billion.
Personal income tax collection increased year-on-year by 21.3 percent to CZK 46.1 billion. According to the Ministry of Finance, this year’s reduction in the threshold for a higher rate of income tax or the adjustment of the taxation of non-monetary benefits is reflected in the growth of collections. Collection of corporate income tax increased by 17.1 percent to 44.1 billion crowns.
In contrast, year-on-year expenditures increased by only one and a half percent, or by CZK 11.1 billion, the ministry said. Social benefits have traditionally been the largest item. Year-on-year, they increased by 5.5 percent to 304.2 billion crowns, of which 239.6 billion crowns were pension payments. On the contrary, support in the field of energy fell significantly compared to last year, by 18.7 billion.
Capital expenditures for the first four months of the year reached 54.9 billion crowns, four percent more than last year. The majority of the money was co-financing projects that use subsidies from the European Union.
This year, the state should manage revenues of 1.94 trillion crowns and expenditures of 2.19 trillion crowns. The planned deficit is 252 billion crowns. Last year, the budget ended with a deficit of 288.5 billion crowns. It was the best result since the beginning of the covid-19 pandemic, but at the same time the fourth deepest deficit in the history of the Czech Republic.
In the first quarter, the state collected more in taxes than last year
Economy
