In the Q2 2023, the general government sector balance ended up with a surplus that corresponded to 1.5% of the GDP. The government debt ratio increased by 0.8 percentage point (p. p.), year-on-year (y-o-y), to 44.3% of the GDP.

In the Q2 2023, the general government sector balance reached the surplus of CZK 26.9 bn, which is an improvement by CZK 24.7 bn, compared to the corresponding period of the previous year. The balance of the central government continued to remain in the deficit of CZK 25.1 bn, which improved by CZK 46.8 bn, y-o-y. The local government sector ended up with the surplus of CZK 50.7 bn; however, its performance worsened by CZK 16.0 bn, y-o-y. Social security funds (of health insurance companies) performance ended up with the surplus of CZK 1.3 bn.

“In the Q2 2023, the general government sector balance ended up with the surplus of CZK 26.9 billion. In the year-on-year comparison, on the income side, received property income and taxes on income increased the most. The debt ratio of the general government sector increased by 0.8 percentage point, year-on-year, and reached 44.3% of the GDP,” Helena Houžvičková, Director of the Government and Financial Accounts Department of the Czech Statistical Office (CZSO), stated.

The general government sector balance, Q2 2021 – Q2 2023

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 13.2%, compared to the corresponding period of the previous year, and reached 45.8% of the GDP. Especially the following contributed to the y-o-y increase in revenues: an increase of revenues from property income and from taxes on income. The total government expenditure increased by 9.9%, y-o-y, and reached 44.3% of the GDP. Expenditure on social benefits and on compensation of employees increased the most.

The nominal general government debt increased, year-on-year, by CZK 357.0 bn to CZK 3 150.7 bn. The government debt ratio increased, year-on-year, from 43.5% to 44.3% of the GDP. The influence of the nominal change of the debt was +5.0 p. p., while the increasing nominal GDP contributed to a decrease in the indebtedness by –4.2 p. p. In the quarter-on-quarter comparison, the debt increased by CZK 51.3 bn, the nominal change of the debt was 0.7 p. p., whereas the increase of the nominal GDP contributed to a decrease of indebtedness by –0.9 p. p., which means that the debt ratio decreased, quarter-on-quarter, by –0.2 p. p.

In the Q2 2023, the change in the debt (an increase by CZK 51.3 bn) was considerably different from the general government sector balance (the surplus of CZK 26.9 bn). The general government sector borrowed by CZK 51.3 bn more despite it ended up with the surplus, which resulted in an increase of the value of assets held, especially of deposits

Regarding the debt structure, especially the issued debt securities increased, year-on-year (CZK +350.5 bn).

Debt of the general government sector, Q2 2021 – Q2 2023

The general government sector balance after seasonal adjustment as well as adjustment for calendar effects ended up with the deficit of CZK 59.8 bn, which corresponded to 3.3% of the GDP. In the q-o-q comparison, the balance improved by CZK 6.5 bn. 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, Q2 2021 – Q2 2023

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: 5 January 2024