Budget Battle: Czech Parliament Faces Fiscal Showdown

The outgoing Czech centre-right cabinet will re-submit its 2026 state budget plan to the newly elected parliament for debate. The plan, with a proposed deficit of 286 billion crowns, has sparked controversy with incoming parties, particularly over allocations for infrastructure and social spending.

Prime Minister Petr Fiala announced that the outgoing Czech centre-right cabinet plans to re-submit its 2026 state budget proposal to the newly elected parliament for discussion.

The plan, involving a central government budget deficit of 286 billion crowns ($13.74 billion), was shelved after the parliament was dissolved post the October elections. The populist ANO party, victors of the election, have insisted on a re-submission as they negotiate to establish a new cabinet.

Andrej Babis, a former prime minister and head of the winning party, criticized the current budget draft for lacking essential funds for infrastructure projects and welfare. With his coalition, which includes controversial parties, he plans to revise allocation strategies, potentially enlarging the fiscal deficit as per analyst forecasts.

(With inputs from agencies.)