The Czech Republic’s state budget deficit reached €3.62 billion in the first quarter of 2025, increasing from February’s level of €2.72 billion, the Ministry of Finance reported.
Despite the month-on-month rise, the situation has improved compared to last year, when the deficit for the first quarter of 2024 stood at €4.17 billion. Finance Minister Zbyněk Stanjura (ODS) stated that the year-on-year reduction in the deficit confirms positive economic trends. According to him, government measures aimed at stabilizing public finances are starting to show results.
State budget revenues for the first three months of the year amounted to €18.92 billion, reflecting a 6.1% increase compared to the previous year. The main drivers of growth were higher tax revenues and mandatory insurance contributions. Meanwhile, government spending rose by 2.4%, reaching €22.53 billion.
Stanjura noted that the full impact of budgetary policies would become clearer in the coming months, particularly following the annual tax assessment.
