For the year 2022, the balance of the general government sector ended up with a deficit corresponding to 3.6% of GDP, which is a year-on-year (y-o-y) decrease by 1.5 percentage point (p. p.). The general government sector debt in the end of the year 2022 reached 44.1% of GDP while the y-o-y increase was by 2.1 p. p.

“The balance of the general government sector for the year 2022, which ended up with a deficit in the amount of CZK 247.5 billion (bn), improved by CZK 63.1 bn, compared to the previous year. The government debt ratio grew more than the reached economic result; it amounted to 44.1% of GDP,” Helena Houžvičková, Director of the Government and Financial Accounts Department of the Czech Statistical Office (CZSO), stated.

The largest share on the result continued to mainly belong to the balance of the central government that reached the deficit of CZK 298.0 bn. The local government sector balance ended up with a surplus of CZK 52.8 bn and the social security funds sub-sector (of health insurance companies) ended up with a deficit of CZK 2.2 bn.

Table 1: Notification table of government deficit and debt, the Czech Republic, 2019–2022

During spring notifications, the general government sector balance for the year 2021 was also slightly revised; it improved by CZK 0.9 bn owing to updating of data on taxes and received social contributions.

The total general government sector revenue increased in 2022 by 10.0*%, y-o-y; in absolute terms, it was an increase by CZK 252.3 bn. Revenue from social contributions and from taxes on production and imports were increasing the most.

The total general government sector expenditure increased in 2022 by 6.7*%, y-o-y; i.e. by CZK 189.2 bn. The highest increase was recorded for social benefits paid, expenditure on gross capital formation, and interest paid. A decrease occurred in subsidies.   

In the end of 2022, the relative debt of the general government reached 44.1% of GDP. In the year-on-year comparison, the relative debt increased by 2.1 p. p. An increase in the nominal GDP contributed to a decrease of the relative amount of the debt (-4.2 p. p.), whereas the nominal growth of the debt contributed in relation to the GDP to an increase by 6.3 p. p.

In the end of 2022, the general government debt reached CZK 2 997.1 bn; a major part of it consists of issued debt securities the volume of which increased by CZK 239.3 bn, y-o-y; newly, there was also a significant increase in received loans (by CZK 184.9 bn).

For the whole year 2022, the debt increase (CZK 430.4 bn) was considerably higher than the economic result (CZK -247.5 bn) of the general government sector. The general government borrowed by CZK 182.9 bn more than their need to be financed was, which was reflected on the assets side mainly by an increase in the value of lending, deposits, and other receivables.

Two extraordinary circumstances had a significant influence on the general government sector economic result in the year 2022: a steep price increase of energies and the war conflict in Ukraine. A description and impact of those circumstances on the government finance statistics is described in the methodological note.

Indicators presented in the Table 1 were transmitted to Eurostat on 31 March 2023.

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

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

Responsible head at the CZSO: Helena Houžvičková, Director of the Government and Financial Accounts Department, phone: (+420) 704 688 734, e-mail: helena.houzvickova@czso.cz
Contact person: Jaroslav Kahoun, Head of the Government Accounts Unit, phone: (+420) 274 054 232, e-mail: jaroslav.kahoun@czso.cz
Next News Release will be published on: 21 April 2023