In Q2 2021, the general government sector balance improved by CZK 38.5 bn compared to the corresponding period of the previous year, which was contributed to by all general government; the balance of the central government improved by CZK 11.5 bn, y-o-y, and ended up with the deficit of CZK 99.6 bn. The local government sector performance continued to end up with the surplus of CZK 33.4 bn, which was an increase by CZK 19.0 bn, y-o-y. Social security funds performance also improved by 7.9 bn, y-o-y, and ended up with the surplus of CZK 8.9 billion.

The general government sector balance, Q2 2019 – Q2 2021

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

The total revenues of the general government sector increased by 14.1% compared to the corresponding period of the previous year. Especially the following contributed to the y-o-y increase in revenues: an increase of revenues from social contributions (+17.0% to CZK 257.0 bn), taxes on production and imports (+8.7% to CZK 176.4 bn), and from taxes on income (+11.9% to CZK 117.4 bn). A decrease in revenues was recorded only for capital transfers (-7.9% to CZK 14.2 bn).

The total general government expenditure increased by 6.4%, y-o-y. Expenditure on the following increased the most: compensation of employees (+17.5% to CZK 173.5 bn), social benefits (+6.2% to CZK 266.5 bn), subsidies (+18.2% to CZK 60.4 bn). A significant decrease was recorded only in capital transfers (-49.5% to CZK 16.7 bn).

The government debt ratio increased, year-on-year, from 39.6% to 42.7% of GDP while the increasing nominal GDP contributed to a decrease in indebtedness by -1.1 p. p. The nominal debt of the general government increased, y-o-y, by CZK 252.2 bn to CZK 2 517.0 bn and its contribution amounted to 4.3 p. p. In the quarter-on-quarter comparison, the debt ratio decreased by -1.3 p. p. The nominal debt increased by CZK 4.5 bn, q-o-q, and contributed to the increase of the debt ratio by 0.1 p. p., whereas the increase of the nominal GDP contributed to a decrease by -1.4 p. p.

Regarding the debt structure, especially the following increased, year-on-year: the issued debt securities (CZK +199.6 bn) and the volume of received loans (CZK +48.8 bn). The issued debt securities continue to be the main component of the debt. The value of issued debt securities also increased in the quarter-on-quarter comparison, whereas received loans decreased.

Debt of the general government sector, Q2 2019 – Q2 2021

The general government sector balance after seasonal adjustment as well as adjustment for calendar effects ended up with a deficit of CZK 88.1 bn, which corresponded to 5.8% of GDP. In the q-o-q comparison, the balance improved by CZK 33.2 bn. The development of the general government sector balance adjusted by seasonal and calendar effects is shown in the chart below.

Debt of the general government sector, Q2 2019 – Q2 2021

Also in Q2 2021, the government financial statistics data were partially influenced by consequences of the epidemiologic situation related to the spread of the COVID-19 disease, when many emergency measures of the Government of the Czech Republic continued to remain in force.

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 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 www.czso.cz in the “GDP, National Accounts” section.
(http://apl.czso.cz/pll/rocenka/rocenka.indexnu_gov?mylang=EN)

Unless otherwise stated, data are not seasonally adjusted as well as they are not adjusted for calendar effects.

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 Government Accounts Unit, phone number: (+420) 274 054 232, e-mail: jaroslav.kahoun@czso.cz
The Next News Release will be published on: 10 January 2022