The state budget ended in a deficit of CZK 31.5 billion in January this year . The Ministry of Finance announced this in a press release today. This is the highest January deficit since the establishment of the Czech Republic. Last January, the budget ended with a deficit of CZK 8 billion.
“The year-on-year deterioration of the balance by CZK 23.5 billion is the result of a continuing decline in tax revenues deepened by a change in the budget allocation of taxes in favor of local budgets by CZK 2.2 billion and a transfer of CZK 12 billion to finance social services, which took place last year in February, “said the Ministry of Finance. Since this year, the share of municipalities and regions in revenues from so-called shared taxes has increased. These include, for example, VAT or corporate and personal income taxes.
Total revenues Tax revenues, including social security contributions, fell by CZK 5.6 billion year-on-year to CZK 104.9 billion in January, while total budget expenditures in January rose by CZK 19.5 billion year-on-year to CZK 120.1 billion . 151.6 billion crowns . MF also informed that the state budget to fight the pandemic coronavirus went from last March to the end of January this year, CZK 231.5 billion.
Direct measures, for example in the form of compensatory bonuses, Antivirus programs and other programs, required 144.1 billion crowns . The deferral of tax advances was calculated by the Ministry of Finance at CZK 24.3 billion and expenditures on health care in the form of the purchase of protective equipment, rewards for health professionals or debt relief for selected hospitals at CZK 63.1 billion. In January, the Ministry of Finance calculated the total aid at CZK 13.3 billion.
At the end of January, the collection of value added tax fell by CZK 2.8 billion year-on-year to CZK 29.5 billion. In addition to the change in the budget allocation of taxes, the lower revenues were also due to lower tax rates on food and other services and goods from May and July 2020 and on heat and cold from January 2020 and restrictive anti-pandemic measures.
In the case of expenditures, current expenditures increased, while capital expenditures decreased year on year. The state spent CZK 149.2 billion on current expenditures in January , up CZK 19.8 billion more year-on-year. Capital expenditures fell by CZK 0.3 billion year-on-year to CZK 2.4 billion .
In January, the state paid 58.6 billion crowns in social benefits , up three billion crowns year-on-year . Of this, CZK 44.7 billion went to pensions.
Source: Patria CZ
