Friday, 6 February 2026
The Czech Republic’s national debt is expected to increase by approximately CZK 313.6 billion this year, reaching nearly CZK 4 trillion, according to documentation accompanying the draft state budget submitted by the government to parliament. The projected rise is broadly in line with last year’s increase. At the same time, the cost of servicing the debt is forecast to climb to around CZK 110 billion, up from roughly CZK 98 billion a year earlier.
Government materials note that the final level of debt will depend on the actual outcome of public finances during the year. The draft budget anticipates a deficit of about CZK 310 billion. Total state revenues, including funds from the European Union, are estimated at approximately CZK 2.1 trillion, while expenditures are expected to reach around CZK 2.4 trillion. The overall deficit of the government sector is projected at 2.2 percent of gross domestic product, slightly above the previous year’s level of two percent.
The debt-to-GDP ratio is expected to rise to 44.6 percent by the end of 2026, compared with 43.1 percent at the end of last year. The share of debt relative to economic output has generally been increasing since 2020, with a brief decline recorded in 2023.
By the end of 2025, the vast majority of the country’s debt consisted of domestically issued government bonds and short-term treasury bills. In 2026, bonds with a total value exceeding CZK 420 billion are scheduled to mature, adding to refinancing needs. The national debt is primarily formed through the accumulation of state budget deficits and is financed through a combination of treasury bills, government bonds, direct loans and borrowing from international financial institutions such as the European Investment Bank.
Source: CTK
