Tuesday, 4 November 2025
The Czech state budget ended October with a deficit of CZK 183.1 billion, according to data released by the Ministry of Finance. The gap widened from September’s CZK 153.9 billion but remains the lowest October result in six years, improving on last year’s CZK 200.7 billion shortfall.
The ministry attributed the year-on-year improvement to consolidation measures adopted under the government’s fiscal reform package, which have increased revenues faster than expenditures.
Budget income totalled CZK 1.718 trillion, up 7.2 percent compared with the same period last year. The strongest growth came from corporate taxes, which rose 15 percent, and personal income tax, up 12 percent. Value-added tax revenue grew 8.5 percent, reflecting steady household consumption.
Spending reached CZK 1.901 trillion, 5.4 percent higher than in 2024. Social benefits remained the largest expenditure item at CZK 771.8 billion, including CZK 599 billion in pensions. The state spent CZK 73.5 billion on debt servicing, a 10 percent increase, while capital investment rose 23 percent to CZK 172.5 billion, mainly through infrastructure programmes.
Finance Minister Zbyněk Stanjura said the current trend shows “revenues growing faster than spending,” describing it as a signal of gradual fiscal stabilisation.
Analysts expect the deficit to expand in the final two months of the year, but most forecasts indicate that the government could still meet its 2025 deficit target of CZK 241 billion.
The Czech Republic recorded a deficit of CZK 271.4 billion in 2024, marking the best fiscal outcome since the COVID-19 pandemic.
Source: CTK
