As of April 2025, the Czech Republic's state budget deficit reached CZK 126.1 billion, a decrease from CZK 153.1 billion in the same period the previous year. Finance Minister Zbyněk Stanjura credits this improvement to the government's consolidation package and economic growth. State revenues increased by 5.2% year-on-year to CZK 622.7 billion, driven by higher tax collections, while expenditures rose modestly by 0.5% to CZK 748.8 billion.

Personal income tax revenue grew by 15.3% to CZK 53.1 billion, influenced by wage increases and tax policy changes. Mandatory insurance contributions rose by 7.2% to CZK 260.4 billion. Value-added tax (VAT) collections increased by 8.5% to CZK 131.1 billion, reflecting higher household consumption. Excise tax revenues grew by 5.4% to CZK 50.7 billion, and corporate income tax revenue rose by 5.8% to CZK 46.6 billion.

On the expenditure side, social benefits remained the largest item at CZK 312.9 billion, with pension payments accounting for CZK 242.9 billion. Debt servicing costs increased by 23.3% to CZK 28 billion. Capital expenditures decreased by 20.8% to CZK 43.6 billion, primarily due to reduced co-financing of EU programs and lower defense investments.

For the full year, the government projects revenues of CZK 2.086 trillion and expenditures of CZK 2.327 trillion, resulting in a planned deficit of CZK 241 billion. This compares to a deficit of CZK 271.4 billion in 2024, which was the lowest since the COVID-19 pandemic but still the fifth-largest in the country's history.

Source: E15