In the Q1 2022, the government deficit reached CZK 94.1 billion (bn), which was by CZK 47.7 bn better result, year-on-year. The highest contribution to the year-on-year decrease was mainly thanks to the central government, which ended up with a deficit of CZK 102.5 billion, however, the balance of which improved by CZK 53.3 bn, year-on-year. The local government sector balance ended up with a surplus of CZK 5.1 bn and social security funds ended up with a surplus of CZK 3.4 bn.

“The general government sector in the first quarter of 2022 ended up with a deficit that amounted to CZK 94.1 bn, which corresponds to 6.1% of GDP. The government debt ratio decreased by 1.1 p. p, year-on-year, and reached the amount that corresponded to 42.8% of GDP. The economic result was significantly contributed to by an increase in revenues from taxes on production and imports and by a decrease in subsidies paid,” Helena Houžvičková, Director of the Government and Financial Accounts Department of the Czech Statistical Office (CZSO), stated.

The general government sector balance, Q1 2020 – Q1 2022

Note: Data in the table are not seasonally adjusted and cannot be compared quarter-on-quarter.

The total government revenues increased by 13.4%, y-o-y, and reached 40.2% of GDP. The y-o-y increase in revenues was mainly contributed to by an increase in revenues from taxes on production and imports, from social contributions, and taxes on income. The total government expenditure increased by 3.7% and reached 46.3% of GDP. Capital expenditure and expenditure on social benefits increased the most. A decrease was recorded mainly as for subsidies.

The nominal debt of the general government increased by CZK 171.0 billion to CZK 2 683.5 billion. The government debt ratio decreased from 43.9% to 42.8% of GDP, year-on-year, the change of the debt was +2.7 p. p., whereas the increasing nominal GDP contributed to a decrease in the indebtedness by –3.8 p. p. The debt increased by CZK 117.0 billion, quarter-on-quarter. In the quarter-on-quarter comparison, the debt ratio increased by 0.8 p. p. Contribution of the increasing debt to the increase of the debt ratio was +1.9 p. p., whereas the increase in the nominal GDP contributed to a decrease by –1.1 p. p.  

Regarding the debt structure, especially the following increased, y-o-y: issued debt securities (CZK +280.0 bn), which continue to be the main component of the debt.  

Debt of the general government sector, Q1 2020 – Q1 2022

The general government sector balance after seasonal adjustment as well as adjustment for calendar effects ended up with a deficit of CZK 75.0 bn, which corresponded to 4.6% of GDP. The general government sector balance improved by CZK 3.7 bn, q-o-q. The development of the general government sector balance adjusted by seasonal and calendar effects is shown in the chart below.

Seasonally adjusted general government sector balance, Q1 2020 – Q1 2022

The government surplus/deficit is represented by the item B.9 “net borrowing (−) or net lending (+)” in the system of national accounts. It refers to the ability of the general government sector to finance other sectors of the economy (+) or the need of the general government sector to be financed (−) by other sectors of the economy in the given period.

The general government debt is the amount of consolidated liabilities of the general government sector comprising the following items: received deposits, issued debt securities, and received loans. In case of foreign exchange debt instruments hedged against the currency risk, the value in CZK is obtained by means of the contractual exchange rate.

The general government sector balance is compared with the amount of the GDP in the given quarter at current prices. The amount of the consolidated general government debt is compared with the sum of quarterly GDP for the last four quarters at current prices. Fiscal indicators of quarterly government deficit and debt are published within the Transmission programme (Table 25 and Table 28) on the website General government sector in the “GDP, National Accounts” section). Unless otherwise stated, data are not seasonally adjusted as well as they are not adjusted for calendar effects. Time series of seasonally adjusted sector accounts for government sector (item Net Lending / Net Borrowing) Time series of seasonally adjusted sector accounts for S.13

Responsible head at the CZSO: Helena Houžvičková, Director of the Government and Financial Accounts Department, phone number: (+420) 704 688 734, e-mail: helena.houzvickova@czso.cz
Contact person: Jaroslav Kahoun, Head of the Government Accounts Unit, phone number: (+420) 274 054 232, e-mail: jaroslav.kahoun@czso.cz
The Next News Release will be published on: 3 October 2022