Government deficit and debt - 1. quarter of 2016

Annual decrease in both deficit and indebtedness

04.07.2016
Code: 050061-16
 

Deficit of government institutions expressed as a percentage of GDP has reached 0.74 percent in the Q1 2016. Compared to the Q1 2015, deficit has been reduced by nearly 1.1 percentage point.

 

Surplus/Deficit of government institutions, the Czech Republic, 1.Q2015-1.Q2016

 

Unit

2015

2016

1. quarter

2. quarter

3. quarter

4. quarter

1. quarter

Net borrowing (deficit) of general government

CZK mill.

-19 192

9 759

8 165

-17 414

-8 117

% of GDP

-1.82

0.85

0.70

-1.46

-0.74

Notice: data are not seasonally-adjusted; data cannot be compared quarter-to-quarter

 

The annual increase in revenues (+25 mill. CZK) mainly in the form of taxes and social contributions account for the annual reduction in deficit. On the expenditure side, the most significant increase has been recognised in the item “social benefits” (CZK +8 mill.); the pension indexation and one-off payment to pensioners in particular explain this annual change. Furthermore, the higher annual increase has been shown also in the items “compensation of employees” (CZK +4 mill.) and intermediate consumption (CZK +3 mill.). On the contrary, a modest decrease (by CZK 0,4 mill.) has been recorded in the form of investment expenditures.

At the end of the first quarter of 2016, the level of indebtedness has reached the level of 40.43 percent of GDP. Annual decrease by more than 1.5 percentage point can be explained by higher growth rate of the nominal GDP exceeding the growth in the nominal government debt. However, compared to the Q4 2015 the indebtedness has risen by 0.12 percentage point.

 

Debt of government institutions, the Czech Republic 1.Q2015-1.Q2016

 

Unit

2015

2016

1. quarter

2. quarter

3. quarter

4. quarter

1. quarter

Consolidated gross government debt

CZK mill.

1 835 431

1 827 990

1 829 039

1 836 166

1 857 890

% of GDP

41.94

41.17

40.67

40.31

40.43


The shares of relevant instruments in the total debt remain stable over time with the dominant position of debt securities (90 percent).

Indicators of government deficit and debt mentioned above are based on the accrual basis as requested by the methodology ESA2010 and the Manual on government deficit and debt. Accrual accounting records flows at the time economic value is created, transformed, exchanged, transferred or extinguished. Government surplus/deficit is represented by the item B.9 “net borrowing (-) or net lending (+)” in national accounts. It refers to the ability of general government sector to finance other sectors (+) or the need of general government sector to be financed (-) by other economic sectors. From the methodological point of view, the published indicators are fully consistent with the annual indicators used for the EDP purposes.

Deficit is compared with nominal GDP in given quarter. The amount of consolidated debt defined as sum of the items Currency and deposits, Debt securities and Loans, is compared with the sum of nominal GDP for the last four quarter. Fiscal indicators of quarterly government deficit and debt are regularly published within the Transmission programme (table 25, table 28) on the web www.czso.cz in the section “GDP, National Accounts” (http://apl.czso.cz/pll/rocenka/rocenka.indexnu_gov?mylang=EN)

_____________________
Notices:
Responsible manager: Vaclav Rybacek, Ph.D., tel.: 274052596, e-mail: vaclav.rybacek@czso.cz
Contact person: Jaroslav Kahoun, tel.: 274054232, e-mail: jaroslav.kahoun@czso.cz
Coming News Release : 3. 10. 2016

This press release has not been edited for language.

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Published: 04.07.2016
The data are valid as of the release date of the publication.


Contact: Information Services Unit - Headquarters, tel.: +420 274 056 789, email: infoservis@czso.cz