Notifications of the government deficit and debt

Notification of government deficit and debt

April 2014

The notification of government deficit and debt is compiled for the past four years and submitted to the European Commission by each Member State of the EU twice a year, regularly at the end of March and September, including a projection for the current year. The calculation of the requested aggregates is based on the methodology of the European System of Accounts (ESA95). Pursuant to the Maastricht criteria, the deficit and the cumulated debt should not exceed 3% of GDP and 60% of GDP, respectively.



Government surplus/deficit – EDP B.9 - refers to net borrowing (-) or net lending (+) including interest on swap transactions. It shows the ability of the general government sector to finance other entities (+) or the need of the general government sector to be financed (-) in the given year.

Government debt includes, by definition, liabilities of the general government sector resulting from currency emissions (not applicable to the CR), received deposits, issued securities other than shares (except for financial derivatives), and received loans.

Indicators given in the table were transmitted to Eurostat at the end of March 2013. Based on the consultation with Eurostat, the deficit in 2013 has been increased by 0,01 p.p. due to reclassification of transactions between the government and public corporations as capital transfer with negative impact on deficit. At the same time, the positive impact of the transfer from Lesy ČR, s.p. to the State Budget has been recalculated upwards (reduction in deficit). The deficit for 2012 has been increased by 0,02 p.p. due to adjustment in collected taxes.

Debt in 2012 has been revised due to implementation of more detailed information for consolidation of government debt within the sector of government institutions. Nominal level of debt for 2013 remains unchanged.

The European Commision did not express any objections to the government deficit and debt of the Czech Republic.

The projection of government deficit and debt for the year 2013 is prepared and published by the Ministry of Finance of the Czech Republic.