Thursday, 2 July 2026
The Czech Republic’s general government sector recorded a deficit equivalent to 3.5% of GDP in the first quarter of 2026, while government debt increased to 44.1% of GDP, according to the Czech Statistical Office.
The deficit totalled CZK 72.3 billion during the quarter, representing a deterioration of CZK 1.6 billion compared with the first quarter of 2025.
The central government posted a deficit of CZK 82.7 billion, improving by CZK 17.0 billion year-on-year. In contrast, the local government sector recorded a surplus of CZK 12.0 billion, although this was CZK 19.9 billion lower than a year earlier. Social security funds, including health insurance companies, reported a deficit of CZK 1.6 billion, an improvement of CZK 1.2 billion compared with the previous year.
Total government revenue increased by 5.1% year-on-year, reaching 40.2% of GDP. Growth was primarily driven by higher social security contributions and increased tax revenues from production and imports.
Government expenditure rose by 4.9% to 43.7% of GDP. The largest increases were recorded in social benefit payments, public investment and employee compensation.
Government debt reached CZK 3.83 trillion at the end of the first quarter, an increase of CZK 292.6 billion compared with a year earlier. As a share of GDP, debt rose from 43.3% to 44.1%.
The increase in debt was driven mainly by higher issuance of government debt securities, which rose by CZK 307.8 billion year-on-year.
After adjusting for seasonal and calendar effects, the government recorded a deficit of CZK 50.7 billion during the quarter, equivalent to 2.3% of GDP. Compared with the previous quarter, the seasonally adjusted deficit widened by CZK 3.0 billion.
