On Wednesday 30 September 2026 the government of Andrej Babiš (ANO) published in the library of legislative materials details of the draft state budget for 2027, which the cabinet had approved a week earlier. The draft assumes revenues of 2.199 trillion crowns and expenditure of 2.585 trillion crowns; the deficit is to reach 386 billion crowns, which would be the second highest figure since the creation of Czechia.[1][2][3] For 2026 the approved deficit is 310 billion crowns.[2]
Changes compared with the August proposal
At the end of August the Ministry of Finance proposed a deficit of 389 billion crowns; during discussion in the government expected revenues rose by nine billion and expected expenditure by six billion crowns.[2][3] Compared with the original proposal, the government increased expenditure mainly of the ministries of the interior, labour and social affairs, education, and industry and trade.[1][2][3] The largest increase was recorded by the Ministry of the Interior, whose expenditure rose by 5.6 billion crowns to 128.8 billion crowns.[2][3] Expenditure of the Ministry of Labour and Social Affairs rose by five billion to 1.031 trillion crowns, of education by 4.2 billion to 292.1 billion crowns, and of industry and trade by 3.5 billion to 71.4 billion crowns.[2][3] Increases of more than a billion were also recorded by the chapters of agriculture (by 2.4 billion to 66.6 billion crowns), finance (by 1.4 billion to 29.2 billion crowns), justice (by 1.3 billion to 43.2 billion crowns) and the environment (by 1.2 billion to 21 billion crowns).[2][3]
Reduction of the budget reserve and defence
The most significant decline compared with the August proposal occurred in the general treasury administration chapter, whose expenditure fell by 19.8 billion crowns, mainly because of lower salary expenditure. The government's budget reserve was reduced by three billion crowns to a newly proposed eight billion crowns.[2][3] The government, on the other hand, cut the expenditure of the Ministry of Defence by 100 million crowns compared with the August proposal, to 190.9 billion crowns, increasing money for salaries and reducing spending on the development of the state defence system and on strategic intelligence.[1] Year on year, defence spending rises by about 36.1 billion crowns, or 23 percent; an increase of 36 billion had been promised by Prime Minister Andrej Babiš as early as July, before the NATO summit in Ankara.[1]
Overall development of expenditure and debt
Compared with 2026, the expenditure of most ministries rises, most markedly that of the Ministry of Industry and Trade by 31 percent, followed by defence with an increase of 23 percent. Expenditure of the Ministry of Regional Development, by contrast, falls by a third.[2][3] The state budget deficit will reach 3.5 percent of gross domestic product, after 2.5 percent of GDP in 2026. Czech public debt is expected to rise to 47.3 percent of GDP from the 45.8 percent of GDP expected for 2026, and the costs of servicing the state debt are expected to reach 130 billion crowns after 110 billion crowns in 2026.[2][3]
Chronology
- — The government raised ministries' spending and cut the budget reserve in its draft budget. ČTK / České noviny Novinky.cz
Sources
- ČTK / České noviny — 30 September 2026
- Novinky.cz — 30 September 2026
- Echo24 — 30 September 2026