The Czech economy, like most economies around the world, was hit hard by the COVID-19 pandemic in 2020. The ensuing economic contraction and the revenue and expenditure measures taken to mitigate the negative impacts of the crisis gave rise to a large public finance imbalance. All this affected the levels of the indicators monitored in…
Pursuant to Act No. 23/2017 Coll., on budgetary responsibility rules, Section 21(2)(a), the Czech FiscalCouncil monitors the development of public sector finance. Within the framework of that work, it alsostrives to identify risks and threats that may have an adverse impact on public budget stability in theshort-term, medium-term, and long-term. Since September 2018, the Czech…
Pursuant to Act No. 23/2017 Coll., on budgetary responsibility rules, Section 21(2)(a), the Czech Fiscal Council monitors the development of public sector finance. Within the framework of that work, it also strives to identify risks and threats that may have an adverse impact on public budget stability in the short-term, medium-term, and long-term. Since September…
The current Czech Fiscal Council Report on the Long-Term Sustainability of Public Finances shows what impact a short period of expansionary fiscal policy and changes to the fiscal rules can have on the long-term sustainability of public finances. Although the projection in the Report covers a 50-year timescale, the initial conditions set today are fundamental…
Pursuant to Act No. 23/2017 Coll., on budgetary responsibility rules, Section 21(2)(a), the Czech Fiscal Council monitors the development of public sector finance. Within the framework of that work, it also strives to identify risks and threats that may have an adverse impact on public budget stability in the short-term, medium-term, and long-term. Since September…
Pursuant to Act No. 23/2017 Coll., on budgetary responsibility rules, Section 21(2)(a), the Czech Fiscal Council monitors the development of public sector finance. Within the framework of that work, it also strives to identify risks and threats that may have an adverse impact on public budget stability in the short-term, medium-term, and long-term. Since September…
On 26 October 2020, House Document No. 910 was published on the website of the House of Deputies, containing an amendment put forward by Member of Parliament Andrej Babiš, concerning the government draft act amending certain acts in the sphere of taxation and certain other acts. The substance of the amendment lies in doing away…
Pursuant to Act No. 23/2017 Coll., on budgetary responsibility rules, Section 21(2)(a), the Czech Fiscal Council monitors the development of public sector finance. Within the framework of that work, it also strives to identify risks and threats that may have an adverse impact on public budget stability in the short-term, medium-term, and long-term. Since September…
The third Czech Fiscal Council Report on the Long-Term Sustainability of Public Finances was produced in the shadow of the coronavirus pandemic. By affecting the change in the medium-term projection, the pandemic pointed to insufficient resilience of public finances to withstand shocks of a similar nature. Recent fiscal policy has been highly procyclical, and the…
Pursuant to Act No. 23/2017 Coll., on budgetary responsibility rules, Section 21(2)(a), the Czech Fiscal Council monitors the development of public sector finance. Within the framework of that task, it also strives to identify risks and threats that may have an adverse impact on public budget stability in the short-term, medium-term, and long-term. Since September…
The spread of the SARS-CoV-2 virus causing the disease called COVID-19 entails economic consequences for the economy of the Czech Republic that have been made worse by government measures designed to counter the spread of the virus. The expected economic collapse of the Czech economy is historically unprecedented and exceeds the impacts of the global…
At its extraordinary meeting of 1 April 2020, the Government of the Czech Republic approved a bill amending Act No. 23/2017 Coll., on budgetary responsibility rules (hereinafter referred to as the “Act”). The substance of the proposal is a dramatic increase of the maximum admissible structural deficit values for 2021-2027, from 1% of GDP stated…
