Analysts: State budget deficit to reach up to CZK 500bn

(ČIA) The historically worst fulfillment of the state budget of the Czech Republic in May is particularly alarming, mainly due to the still low unemployment. This was stated by the chief economist of CZECH FUND, Lukáš Kovanda, in connection with the data of the Ministry of Finance. He expects a deficit of CZK 500bn for the whole year. ING Bank's chief economist for the Czech Republic Jakub Seidler also predicts the state budget deficit for 2021, specifically at the level of CZK -230bn. Natland's chief economist Petr Bartoň stated that a large part of the missing income is not a real shortfall in budget resources, but only a deferral of levies. Overall, he believes that the deficit should have been much higher at the end of May, and that its actual level only underscores how little the state has compensated for the revenue shortfalls that quarantine has brought.



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