Prague has been working on a budget for 2021 and it’s come up at least CZK 1 billion short as a result of lost income and extra expenses connected to the pandemic. Its leadership decided to push ahead with nearly CZK 15 billion in critical investments, however, and the only way to accomplish that is to secure outside financing. “I realize that to maintain Prague’s economy in a time of crisis, investments are crucial,” said Pavel Vynhnanek, deputy mayor in charge of financing and budgets. “My main priority is therefor to borrow roughly CZK 5 billion for strategic projects. On the other hand, next year, we will pay off loans that are ending for which we have created financial reserves. So the level of the city’s indebtedness will stay the same.” He said the money was not being wasted , but was being injected into the business sector in order to support employment. The biggest investment budget item for next year is the new metro line being built between Pankrac and Pisnice. It will consumer roughly CZK 4.5 billion.
