The state budget for 2025 marks the end of Finance Minister Zbyněk Stanjura’s fiscal tenure and at the same time opens a debate about the true condition of public finances. A deficit of CZK 290.7 billion—the fourth largest in nominal terms since the Czech Republic was established—shows that the promised fiscal consolidation remains incomplete. Czech fiscal policy is gradually moving away from its traditionally conservative approach and increasingly views the state budget as a tool of economic policy. This shift brings certain benefits, but also significant costs.

Key takeaways:

• In 2025, the Czech Republic’s state budget recorded a deficit of CZK 290.7 billion. After adjusting for revenues and expenditures related to European Union projects and financial mechanisms, the deficit amounted to CZK 249.9 billion.
• The dispute over the “true” deficit highlights the complexity of the system, inconsistent use of methodology, and the significant impact of European funds on how fiscal results are presented.
• Minister Stanjura will be remembered as a finance minister operating on the boundary between declared consolidation and creative fiscal accounting.

Analysis – Martin Zeman

The analysis is in PDF under the link below.