Government deficit and debt - 1st quarter of 2015

Lower deficit, debt at the stabilised level

01.07.2015
Code: 050061-15
 

Deficit of government institutions expressed as a percentage of GDP has reached 1.56 percent in the first quarter of 2015. Compared to the first quarter of 2014, deficit has been reduced by almost 2.3 percentage points. Data are based on the accrual principle.

Surplus/Deficit of government institutions, the Czech Republic, 1.Q2014-1.Q2015

 

Unit

2014

2015

1. quarter

2. quarter

3. quarter

4. quarter

1. quarter

Net borrowing (deficit) of general government

CZK mill.

-37 802

-7 350

-2 534

-36 872

-16 096

% of GDP

-3.84

-0.69

-0.23

-3.29

-1.56

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

Final balance has been improved at the central and local level compared to the corresponding period of the previous year. In the case of health insurance companies, the surplus has been lowered by 2 billion of CZK compared to the first quarter of 2014. The reduction in the overall deficit of government institutions has been driven mainly by factors on the revenue side; on the expenditure side, investment expenditures and social benefits has been reduced compared to the first quarter 2014.

The Czech government consolidated gross debt has reached the level 42.40 percent of GDP at the end of the first quarter of 2015. Declining level of the debt can be explained by rising nominal GDP, stabilised level of the state debt constituting a dominant part of the total government debt.

Debt of government institutions, the Czech Republic 1.Q2014-1.Q2015

 

Unit

2014

2015

1. quarter

2. quarter

3. quarter

4. quarter

1. quarter

Consolidated gross government debt

CZK mill.

1 836 613

1 817 712

1 821 584

1 816 137

1 828 140

% of GDP

44.59

43.59

43.08

42.62

42.40

Nominal drop in the debt is caused by decreasing debt in the form of long-term government bonds and by liquidity management in the public sector. Shares of relevant instruments on the total debt remain stable over time with 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: Marie Trejbalova, tel.: 274052706, e-mail: marie.trejbalova@czso.cz
Coming News Release : 1. 10. 2015

 This press release has not been edited for language.

 

 

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Published: 01.07.2015
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