Finance Minister Vows To "Step On Brakes" As Budget Deficit Soars To All-Time Highs

Czech Finance Minister said that "the government must step on the brakes" and suggested that more austerity measures will be presented in the coming days, as fresh data showed that Czechia's YtD budget deficit widened to CZK271.38bn in May from CZK200.03bn in April.

• Stanjura said in a statement that "May is traditionally a weak month" and fiscal performance should be better in the second half of the year on the back of first revenues from the windfall tax, the dividend from energy utility CEZ and money from the European funds.
• However, the government still needs to "step on the brakes." Stanjura said that next week he will "bring to the government a list of budget measures that will slow the deepening of the deficit in the second half of the year" amid the need to save at least another CZK20bn this year.
• This comes on the heels of the government's recently announced fiscal consolidation package, which Stanjura believes is not sufficient. The Minister noted that "these will not be popular steps" but the government needs to take action as soon as possible to improve Czechia's budgetary position.