Czech coalition party demands 5% cut in planned 2027 deficit

A junior party in the ​Czech ruling coalition said on Thursday ​the planned 2027 budget deficit ‌should ​be reduced by about 5%, suggesting there could be room for adjustments in healthcare, transportation and education. The Finance ‌Ministry has proposed a budget deficit of 389 billion crowns for next year, up from 310 billion this year, saying it could not be less without ‌cutting spending on infrastructure, healthcare, defence and other priorities.

"We could get to ‌a lowering of the deficit by at least 20 billion crowns," Petr Macinka, head of the Motorists party, said in a briefing broadcast live on Czech Television. Finance Minister Alena Schillerova ⁠told ​the same briefing she ⁠was open to suggestions by government partners but she maintained her position that she saw ⁠potential savings only in the range of "lower single billions" of crowns.

"We need to realise ... ​that a number of the proposals, while relevant for discussion, would require ⁠legislative changes and thus cannot be applied to the 2027 budget," she said. The proposals could be ⁠debated ​for the 2028 budget, she added.

The government must approve the 2027 budget draft by the end of September before it is sent to ⁠parliament. The deficit currently proposed by the finance ministry would put the overall public sector ⁠shortfall at ⁠3.5% of gross domestic product, and at 2.8% under European Union fiscal rules allowing a temporary exemption for higher defence ‌spending.

($1 = 20.7940 ‌Czech crowns)