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NRR: CR may hit debt brake in three years

(ČIA) If there is no change in the planned fiscal policy, the Czech Republic will hit the debt brake in just three years. This was shown in the new Report on the long-term sustainability of public finances, which is prepared annually by the National Budget Council ( NRR). It also pointed out that in 2020, projections showed that the Czech Republic could reach a debt level of 55% of GDP only in 2043. Now, according to the report, the International Monetary Fund identifies the Czech Republic as the country with the second-highest expected debt growth in the EU. NRR chair Eva Zamrazilová said that the solution should be primarily a revision of the tax mixture, rationalisation of spending and more efficient public administration. The Czech finance ministry said it envisages a consolidation plan that will gradually reduce the structural balance by 0.5 pp of GDP per year. Therefore, the debt ratio of 55% of GDP should not be reached.

 

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