At the end of September, the state budget deficit rose to 252.7 billion crowns from 230.3 billion crowns in August. Last year, at the end of September, the deficit was 21 billion crowns. The Ministry of Finance informed about it. This year’s September result is the worst since the establishment of the Czech Republic. So far, at the end of September, the highest budget deficit in 2011 was 105.1 billion crowns.
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The ministry also informed that at the end of September, 148.6 billion crowns had flowed from the state budget to combat the coronavirus pandemic. Direct measures, for example in the form of compensatory bonuses, Antivirus programs and other programs, required 97.4 billion crowns. The deferral of tax advances was calculated by the Office at CZK 22.2 billion and health care expenditures in the form of the purchase of protective equipment or debt relief for selected hospitals at CZK 29.1 billion.
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At the end of September, budget revenues fell by CZK 45 billion year-on-year to CZK 1.06 trillion. Tax revenues, including social security premiums, decreased by CZK 62.4 billion year-on-year to CZK 907.1 billion. Budget expenditures rose by 186.7 billion year on year to 1.31 trillion crowns.
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The collection of corporate income tax at the end of September fell by 19.3 billion year on year to 79 billion crowns. According to the ministry, the main reason is the waiver of the June advance on corporate income tax.
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The collection of value added tax fell by 3.7 billion to 204 billion crowns. In this case, the year-on-year decline in retail sales had a particularly negative effect. Revenues were also dampened by lower tax rates for regular public transport from last February, for heat and cold from January this year, and for catering and other services and goods from May and July this year.
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“Another reduction stems from delayed and unpaid tax payments in the amount of 1.7 billion crowns for the state budget. On the other hand, in September alone, the collection was 1.5 billion crowns higher year-on-year, which, among other things, reflected the payment of tax obligations delayed in previous months, “said the ministry.
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In the case of expenditures, capital expenditures grew mainly, by 24.4 percent, ie by 20.8 billion, to 105.9 billion crowns. Current expenditures rose by 16 percent year on year, ie by 166 billion, to 1.2 trillion crowns.
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At the end of September, the state paid 505.7 billion crowns in social benefits, a year-on-year increase of 56.9 billion crowns. Of this, 378.4 billion crowns went to pensions.
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Due to the effects of the coronavirus spread on 8 July, the House increased this year’s budget deficit to 500 billion crowns. The highest deficit so far was in the 2009 budget due to the effects of the global economic crisis, over 192 billion crowns.
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For next year, the ministry planned a budget deficit of 320 billion crowns. The government must discuss the proposal by the end of October and send it to the House for approval.
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