In the first round, the Chamber supported the growth of the budget deficit to 330 billion

The amendment will now go to individual committees for consideration.

“The reasons for over-indebtedness are quite clear and, I think, understandable: the effects of the ongoing war conflict in Ukraine, the increase in the cost of living of the population caused by both inflation and high energy prices, the response to the energy crisis,” Stanjura told the plenary session.

The state budget deficit rose to 231 billion in August

Economy

The revenues of the amended budget amount to 1.7 trillion crowns, expenses to 2 trillion crowns.

Total revenues increase by 65 billion crowns. More than 25 billion crowns are to be brought in by value added tax, the state will collect an additional 9.2 billion crowns from corporate income tax and 10.2 billion crowns from personal income tax. Income from social security premiums is additionally increased by nine billion crowns. However, the government warns in the explanatory report that any forecasts are burdened with an enormous degree of uncertainty and risk.

Budget expenditures increase by 115 billion crowns with the amendment. For example, 30.3 billion crowns will be used to strengthen energy security, and a total of 29 billion crowns is intended to strengthen social spending, including the extraordinary valorization of pensions. Expenditures related to the fight against covid increase by 4.4 billion crowns, expenses related to aid to Ukraine increase by 21 billion crowns. The government adds 800 million crowns to land purchases for the Prague district.

Schillerová: Households and companies live in the shadow of collapse

The former Minister of Finance and current head of ANO MPs, Alena Schillerová, criticized the cabinet for the fact that the budget amendment draws on increased revenues, but according to her, neither companies nor citizens will feel the extra money collected.

The report on the indebtedness of the Czech Republic triggered a sharp new firefight between the government and ANO

Economy

“Czech companies, as well as households, are living in the shadow of the collapse that is approaching with the coming winter. Unfortunately, this does not bother the government coalition, at least not enough to come up with quick solutions,” she declared at the podium.

She emphasized that in times of crisis, when people are “running out of money”, the state should help them and at the same time restart the economy with investments, which she now described as “extraordinarily undercut”.

She referred to the fact that Fial’s government first reduced the deficit prepared by the cabinet of ex-prime minister Andrej Babiš (ANO) at the beginning of the year in order to fulfill the pre-election promise to save the state budget, and now it has to make up 16 billion crowns for mandatory expenses.

Okamura apologized to MEPs for lying about the vote. What I said is true, he claims

Homemade

Okamura: A budget fiasco

SPD chairman Tomio Okamura was similarly critical, accusing the government of intending to put the state in debt by a total of more than a trillion crowns during its four-year mandate. “We do not agree with this structure of the state budget. There is a huge expenditure that is not needed at the moment,” he told the government benches.

He mentioned, for example, some army expenses which, according to him, can be solved differently. According to him, savings should also be made on levies to the EU or development aid. “Peter Fiala’s government has completely failed to help Czech citizens and companies,” he was angry at the same time.

He then described the budget amendment as a blunder that cannot be corrected. Although unsuccessful, he therefore proposed to return the proposal to the government for further elaboration, which in practice means only a form of its rejection.

The article is in Czech

Tags: Chamber supported growth budget deficit billion

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