The Czech state budget is projected to end with a deficit of 389 billion crowns in 2027. The proposal, presented to the government on Monday by Minister of Finance Alena Schillerová (ANO), anticipates a significantly larger deficit than this year's planned 310 billion. If the amount remains unchanged, it would be the second-highest deficit since the establishment of the Czech Republic. The state only incurred a greater loss in the pandemic year of 2021, when the deficit reached 419.7 billion crowns.

Expenditures will grow faster than revenues

According to the Ministry of Finance, the state budget's revenue is expected to reach 2.189 trillion crowns next year, while expenditures are projected to increase to 2.578 trillion. The ministry identifies investments, healthcare, defense, and support for economic growth as key priorities. Capital expenditures are expected to reach a record 289.6 billion crowns, the budget of the State Fund for Transport Infrastructure is set at 180 billion, and total spending on defense will be 195 billion crowns.

A significant increase is also planned for healthcare. According to the ministry, the system should receive an additional 50 billion crowns through higher state payments for insured individuals and increased premium collection. An additional approximately 36 billion crowns are expected to be allocated to salaries in the public sector year-on-year. The proposal also includes continued state funding for supported energy sources, which is estimated to cost the state approximately 18 billion crowns per year.

Schillerová defends higher deficit with investments

Schillerová justifies the higher deficit by arguing the need to support investment and economic growth. She claims that a rapid reduction in the deficit could lead to stagnation and delay necessary investments. The ministry also plans for a gradual reduction of the public finance deficit in subsequent years.

The opposition, on the other hand, strongly criticizes the proposal. ODS leader Martin Kupka described it as deliberate national debt accumulation, while STAN leader Vít Rakušan pointed out that the high deficit occurs during a period of economic growth, low inflation, and low unemployment. The Pirates, KDU-ČSL, and TOP 09 also expressed criticism. Economist Aleš Bělohradský from Charles University stated in an interview with ČT24 that, given the current economic development, he believes a deficit of approximately half this amount should be discussed.

Debt already reaches 3.7 trillion crowns

Warnings also come from the Supreme Audit Office. On Monday, it announced that the state debt reached 3.7 trillion crowns at the end of 2025, and the costs associated with servicing it have increased to 98 billion. The budget proposal for 2027 itself includes expenditures of nearly 130 billion crowns in the chapter on state debt.

The amount of 389 billion crowns is not yet final. The government can modify the proposal during September, and the final version of the state budget must be submitted to the Chamber of Deputies by the end of the month.

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