Notification of government deficit and debt - 2021 (First notification, data notified by Eurostat)

Based on regular consultations, Eurostat validated the data on the general government sector balance and the general government debt as published in the News Release on 1 April 2022. It was confirmed that the balance of the Czech general government sector ended up with the deficit in the amount of 5.9% of the GDP. The general government gross debt amounted to 41.9% of the GDP in the end of 2021.

“The balance of the general government sector ended up with a deficit in the amount of CZK 359.4 bn and the amount of the debt reached 41.9% of the GDP. Eurostat has no reservations to the results of the government deficit and debt of the Czech Republic for 2021,” Helena Houžvičková, Director of the Government and Financial Accounts Department of the CZSO, stated.

Notification table of government deficit and debt, the Czech Republic, 2018–2021

Data for all EU Member States will be published on the Eurostat´s website on 22 April 2022 at 11:00 a.m.

Notification of government deficit and debt is compiled always for the past four years and submitted to the European Commission by each Member State of the European Union always at the end of March and September each year, including a projection for the current year. The projection for the current year is compiled and published by the Ministry of Finance of the Czech Republic. Quantification of fiscal indicators is based on the ESA 2010 methodology. Pursuant to the Maastricht criteria, the government deficit must not exceed 3% of the GDP and the level of the accumulated government debt must not exceed 60% of the GDP.

Government surplus/deficit is represented by the item B.9 “net borrowing (−) or net lending (+)” in the system of national accounts. The indicator refers to the ability of the general government sector to finance other sectors of the economy (+) or the need of the general government sector to be financed (−) by other sectors in the given year.

The government debt consists of consolidated liabilities of the general government sector in the form of currency and deposits, issued debt securities, and received loans. In case of foreign exchange debt instruments hedged against currency risk, the value in CZK is obtained by means of a contractual exchange rate.