The lower house of the Czech parliament has approved the state budget for this year with a deficit of 310 billion crowns. It is the first budget drafted by the coalition government led by Prime Minister Andrej Babiš of the ANO party.
The proposal passed by a relatively slim majority — 103 coalition votes against 88 from the opposition. The vote brings to an end a period during which the Czech Republic had been operating under a provisional budget, which limited the government’s ability to fund many areas of public life.
During the final vote, lawmakers also approved several amendments put forward by the coalition. These included an additional 800 million crowns earmarked for sports infrastructure, as well as smaller increases for youth organisations and the humanitarian MEDEVAC programme.
The budget will now be sent to President Petr Pavel, who must sign it into law for it to take effect.
The passing of the budget marks a significant political milestone for Babiš’s cabinet, which after taking power had to quickly address the need to put the country’s finances in order. However, the high budget deficit is certain to remain a subject of ongoing debate — both in parliament and among economists assessing the long-term health of Czech public finances.
