Government deficit and debt - 2. quarter of 2024
General government sector balance remained in a deficit
Publication Date: 02. 10. 2024
Product Code: 050061-24
In the Q2 2024, the general government sector deficit reached CZK 3.5 billion, which means that it improved by CZK 14.0 billion in the year-on-year comparison. The central government ended up with a deficit of CZK 50.8 billion that decreased by CZK 13.6 billion, y-o-y. Performance of the local government sector ended up with a surplus in the amount of CZK 50.6 billion, which means, in a year-on-year comparison, an increase by CZK 4.8 billion. Performance of social security funds (of health insurance companies) ended up with a deficit of CZK 3.1 billion.
“In the second quarter of 2024, the general government sector ended up with a deficit of CZK 3.5 billion, which corresponded to 0.2% of the GDP. The government debt ratio remained unchanged year-on-year at 42.6% of the GDP,” Helena Houžvičková, Director of the Government and Financial Accounts Department of the Czech Statistical Office (CZSO), stated.
The general government sector balance, Q2 2022 – Q2 2024
Period | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 |
|---|---|---|---|---|---|---|---|---|---|
CZK bn | 1.9 | -55.6 | -99.0 | -112.5 | -17.5 | -47.3 | -110.8 | -65.3 | -3.5 |
% of the GDP | 0.1 | -3.1 | -5.3 | -6.3 | -0.9 | -2.4 | -5.6 | -3.5 | -0.2 |
Note: Data in the table are not seasonally adjusted; they cannot be compared quarter-on-quarter.
The total government revenues increased by 5.6%, y-o-y, and reached 42.0% of the GDP. Especially the following items contributed to the y-o-y increase in revenues: received social contributions, received taxes on production and imports and taxes on income. The decrease was recorded for received property income. The total government expenditure increased by 3.8%, y-o-y, and reached 42.2% of the GDP. Expenditure on social benefits increased the most.
The nominal debt of the general government increased, year-on-year, by CZK 169.3 bn to CZK 3 320.0 bn. The government debt ratio remained unchanged at 42.6% of GDP, y-o-y; the influence of the nominal change of the debt was +2.2 p. p., while the increasing nominal GDP contributed to a decrease in indebtedness by -2.2 p. p. In the quarter-on-quarter comparison, the debt decreased by CZK 17.5 bn, the nominal change of the debt was -0.3 p. p., whereas an increase in the nominal GDP contributed to a decrease in the indebtedness by -0.5 p. p., which resulted in an decrease in the debt ratio by -0.8 p. p., quarter-on-quarter.
Regarding the debt structure, mainly issued debt securities increased, year-on-year (CZK +179.4 bn), loans received, on the contrary, decreased (CZK -16.8 bn).
Debt of the general government sector, Q2 2022 – Q2 2024
The general government sector balance after seasonal adjustment as well as adjustment for calendar effects ended up with a deficit of CZK 47.8 bn, which corresponded to 2.4% of the GDP. The general government sector balance improved by CZK 2.3 bn, q-o-q. The development of the general government sector balance adjusted by seasonal and calendar effects is shown in the chart below.
Seasonally adjusted general government sector balance, Q2 2022 – Q2 2024
