Government deficit and debt - 1. quarter of 2016
Annual decrease in both deficit and indebtedness
Publication Date: 04. 07. 2016
Product Code: 050061-16
Surplus/Deficit of government institutions, the Czech Republic, 1.Q2015-1.Q2016
Unit | 2015 | 2016 | ||||
1. quarter | 2. quarter | 3. quarter | 4. quarter | 1. quarter | ||
Net borrowing (deficit) of general government | CZK mill. | -19 192 | 9 759 | 8 165 | -17 414 | -8 117 |
% of GDP | -1.82 | 0.85 | 0.70 | -1.46 | -0.74 | |
Notice: data are not seasonally-adjusted; data cannot be compared quarter-to-quarter
The annual increase in revenues (+25 mill. CZK) mainly in the form of taxes and social contributions account for the annual reduction in deficit. On the expenditure side, the most significant increase has been recognised in the item “social benefits” (CZK +8 mill.); the pension indexation and one-off payment to pensioners in particular explain this annual change. Furthermore, the higher annual increase has been shown also in the items “compensation of employees” (CZK +4 mill.) and intermediate consumption (CZK +3 mill.). On the contrary, a modest decrease (by CZK 0,4 mill.) has been recorded in the form of investment expenditures.
At the end of the first quarter of 2016, the level of indebtedness has reached the level of 40.43 percent of GDP. Annual decrease by more than 1.5 percentage point can be explained by higher growth rate of the nominal GDP exceeding the growth in the nominal government debt. However, compared to the Q4 2015 the indebtedness has risen by 0.12 percentage point.
Debt of government institutions, the Czech Republic 1.Q2015-1.Q2016
Unit | 2015 | 2016 | ||||
1. quarter | 2. quarter | 3. quarter | 4. quarter | 1. quarter | ||
Consolidated gross government debt | CZK mill. | 1 835 431 | 1 827 990 | 1 829 039 | 1 836 166 | 1 857 890 |
% of GDP | 41.94 | 41.17 | 40.67 | 40.31 | 40.43 | |
The shares of relevant instruments in the total debt remain stable over time with the dominant position of debt securities (90 percent).
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@csu.gov.cz
Contact person: Jaroslav Kahoun, tel.: 274054232, e-mail: jaroslav.kahoun@csu.gov.cz
Coming News Release : 3. 10. 2016
This press release has not been edited for language.