The Czech Republic's Budget Deficit Climbed To A Record High In November

The Czech Republic's Budget Deficit Climbed To A Record High In November

The Czech Republic's budget deficit climbed to a record high of CZK 341 billion in November. The Czech Ministry of Finance stated this on Tuesday. According to data from the ministry, which was referred to by the novinky.cz server, the Czech Republic's budget deficit reached CZK 341.5 billion (EUR 13.02 billion) in November. This is CZK 67.5 billion more than a month ago and the highest November deficit since the establishment of the Czech Republic in 1993. After adjusting for European money, the deficit amounted to CZK 335.5 billion at the end of November. The reason is the drop in tax collection due to the crisis associated with the pandemic of the new coronavirus. In addition, spending on social benefits has increased. This year's budget originally counted on a deficit of CZK 40 billion. The Chamber of Deputies subsequently approved an increase in the deficit in connection with the economic consequences of the new coronavirus pandemic, first to CZK 300 billion and later even to CZK 500 billion. However, according to ING chief economist Jakub Seidler, the budget seems to end up with a lower deficit than last approved. "The November data suggest that the total state deficit could end below CZK 400 billion," Seidler said.