Czech budget gap hits record high in April on social spending, energy subsidies

Kitco Media
By Reuters
Published:
Updated:
Reuters
PRAGUE, May 2 (Reuters) - The Czech central state budget posted a 200.0 billion crowns ($9.30 billion) deficit at the end of April, the worst fourth-month result on record, Finance Ministry data showed on Tuesday. The deficit doubled from a 100.1 billion crowns a year ago. Overall expenditure rose 26.7% due to higher welfare payments and the government's assistance for people and companies hit by increased energy prices - increasing the spending by 88.8 billion crowns combined, the ministry said.


The state also paid higher interest on inflation-related government bonds as price growth maintained double-digit pace, easing only to 15.0% year-on-year in March. April inflation data is due on May 11.


Budget revenue increased by 11.4% and did not cover the higher spending as the government has collected less than expected from a windfall taxon energy firms and banks.
(Reporting by Robert Muller, editing by Jan Lopatka)

robert.muller.thomsonreuters.com@reuters.net))
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