Czech Finance Ministry Proposes 2025 Budget with Record Investments and Reduced Deficit

The Czech Finance Ministry has submitted a 2025 budget draft proposing a 9% lower deficit while promising record investments. The draft aims to narrow the fiscal gap to around 2% of GDP. The budget also includes increased defense and education spending. The government will debate the draft before submitting it to parliament.

The Czech Finance Ministry has put forward a 2025 budget draft that aims to reduce the national deficit by 9%, a move that promises record investments while targeting a tighter fiscal gap of around 2% of the gross domestic product (GDP).

Prime Minister Petr Fiala, addressing the nation on the X platform, highlighted that the budget allocates historical amounts for investments while reducing the deficit to GDP ratio. The plan maintains defense spending at 2% of GDP, upholds higher salaries for teachers, and ensures billions are available for strategic investments.

Finance Minister Zbynek Stanjura confirmed there would be no early termination of the existing windfall tax on energy companies and banks, including the electricity producer CEZ. The fiscal and spending projections see a rise in income by 146.1 billion crowns and an increase in spending by 124.1 billion crowns.

(With inputs from agencies.)