The Chamber of Deputies approved the draft 2020 state budget Wednesday night.  A total of 108 were in favour of the Act, which plans on a deficit of 40 billion crowns, like the current year.

Total income of the state budget is to amount to 1,578.1 billion crowns, with planned expenditure amounting to 1,618.1 billion.  The approved document plans on an increase of pension expenditure (CZK + 34.9 bn year on year), wage growth for public administration employees, teachers, and non-teaching staff, and an increase in parental contribution, from the current CZK 220,000 to CZK 300,000.  Capital expenses are to amount to 146.2 billion crowns next year, which is 23.9 billion crowns more than this year.

On the income side, in drafting the proposed state budget for 2020, the Ministry of Finance had to account for the continuing slowing of the economy. 

GDP growth is to reach 2%, according to the Ministry’s November macroeconomic forecast, which is less than in each of the four preceding years.  On the other hand, in the European context, it is still a very good result, as the Czech Fiscal Council stated yesterday, in its regular quarterly opinion.

In terms of the income of the state budget in 2020, the Council pointed to certain problem aspects in the document.  The Act on the state budget also counts on certain income the realisation of which depends on the approval of other acts (known as the tax package).  But they have not been enacted yet and, given the length of the legislative process, there is a risk that they will not take effect before 1 January 2020.

That means that the state budget was approved with income that may not be collected, because the relevant legislation may not be enacted at all, or changes will take place during deliberations on them, which will have an adverse impact on the expected collection.

Overall overview of 2020 state budget expenditure by chapter (proposed, in CZK bn):

301 Office of the President of the Czech Republic  404,730,280
302 Chamber of Deputies of the Parliament 1,358,947,423
303 Senate 628,663,638
304 Office of the Government of the Czech Republic 1,091,826,213
305 Security Information Service 2,147,315,000
306 Ministry of Foreign Affairs 8,171,302,949
307 Ministry of Defence 75,500,365,700
308 National Security Authority 295,080,427
309 Office of the Public Defender of Rights 148,474,064
312 Ministry of Finance 23,889,153,719
313 Ministry of Labour and Social Affairs 686,800,038,058
314 Ministry of the Interior 81,519,358,975
315 Ministry of the Environment  15,899,438,896
317 Ministry for Regional Development 26,631,530,110
321 Czech Science Foundation 4,360,546,000
322 Ministry of Industry and Trade 49,704,100,259
327 Ministry of Transport 67,972,681,089
328 Czech Telecommunication Office 2,585,053,062
329 Ministry of Agriculture 56,544,982,069
333 Ministry of Education, Youth, and Sports 226,467,000,210
334 Ministry of Culture 15,249,131,176
335 Ministry of Health 9,250,443,374
336 Ministry of Justice 31,891,409,426
343 Office for Personal Data Protection 171,776,819
344 Industrial Property Office 213,014,292
345 Czech Statistical Office 1,493,382,719
346Czech Office for Surveying, Mapping and Cadastre 3,633,798,122
348 Czech Mining Authority  185,128,512
349 Energy Regulatory Office 302,164,728
353 Office for the Protection of Competition 258,656,875
355 Institute for the Study of Totalitarian Regimes 259,348,252
358 Constitutional Court 233,195,735
359 Office of the Czech Fiscal Council 23,669,225
361 Academy of Sciences of the Czech Republic 6,513,390,450
362 National Sports Agency 85,923,875
371 Office for Overseeing the Financial Affairs of Political Parties and Political Movements 34,444,691
372 Council for Radio and Television Broadcasting 67,310,087
373 Transport Infrastructure Access Authority 22,311,260
374 Administration of State Material Reserves 2,581,804,229
375 State Office for Nuclear Safety 445,248,327
376 General Inspectorate of Security Corps 452,581,266
377 Technology Agency of the Czech Republic 4,152,464,850
378 National Cyber and Information Security Agency 425, 317,706
381 Supreme Audit Office 690,387,855
396 State debt 43,810,880,286
397 State financial asset operations 400,000,000
398 General treasury administration 163,150,951,475
  TOTAL 1,618,118,723,753

Source: Ministry of Finance of the Czech Republic