The Czech Chamber of Deputies approved the 2018 state budget bill in first reading5. 12. 2017
The approved budget revenues are 1,314.5 billion crowns, the expenditures are 1,364.5 billion crowns. The deficit is to be covered mainly by the issuance of state bonds.
The draft budget is based on an estimated 3.1 percent growth of GDP, compared with the GDP growth of 2.4 percent in 2016. The government said, in connection with the budget bill, that Czech economy benefits from favourable domestic as well as external conditions. A higher growth of the European and world economies and a related stronger demand for Czech exports cannot be ruled out, the government said.
On the other hand, it warned against risks such as a further steep increase in real estate prices. The government plans tax revenues to reach 722 billion crowns next year, a 35-billion increase compared with the tax revenues projected for 2017. Over 434 billion crowns is to go to pensions.
The budget bill will now be discussed by lower house committees that will deal with its individual chapters. The final third reading is scheduled for December 19.