Czech National Budget Council: It is necessary to reduce dependency on Russian gas

Published: 04.04.2022 Related countries:  Czech Republic Czech Republic

The Czech Economy faces uncertainty caused by added inflation pressures due to the Russian invasion of Ukraine

The conflict in Ukraine has added a great deal of uncertainty to the future and increased the risk of a downturn in economic performance and rising inflation. This is according to a March 10, 2022, statement from the Office of the National Budget Council (NRR). In addition to soaring fuel and energy prices, the pressure on inflation may be amplified by nervousness in the foreign exchange market. The budget provisionality brings restrictions on the commencement of major investment projects, the announcement of subsidy programs, and the drawing of entitlements from unspent expenditures. At the end of February 2022, the state budget deficit reached more than CZK 45bn. The Council notes that it is necessary to reduce dependence on Russian gas supplies and that the extent of the impact of the ongoing conflict on public budgets cannot now be seriously quantified.

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