NORDIC CHAMBER Press Archive
NRR: 2023 budget process is non-transparent
(CIANEWS) - Failure to adhere to the usual principles of state budgeting has led to a lack of transparency in the budget process and consequently an inability to label budget proposals as realistic and credible. The National Budget Council (NRR) said this in response to the draft state budget for 2023, adding that there is no reduction in the structural imbalance, which, moreover, is partly transferred to the balance of state special-purpose funds. The NRR considers that if the parameters of the budget imply the achievement of a structural deficit of 3.1% of GDP, the proposal is not in line with the wording of the Law on Budgetary Responsibility Rules. The Czech economy is currently facing a high inflation rate, to which the overly expansionary fiscal policy of recent years has contributed. Therefore, according to the NRR, the current situation needs to be addressed by predominantly one-off and transitional measures that will lead to stabilisation of public finances.