Notification of government deficit and debt - 2024 (First notification, data sent to Eurostat)
General government sector balance ended up with a deficit in 2024
Publication Date: 02. 04. 2025
Product Code: 050062-25
“The balance of the general government sector for the year 2024 ended up with a deficit in the amount of CZK 177.2 billion (bn); in the year-on-year comparison, the total revenue, of that mainly received social contributions, was increasing more than the expenditure. The government debt ratio increased compared to the year 2023 and reached 43.6% of the GDP,” Helena Houžvičková, Director of the Government and Financial Accounts Department of the Czech Statistical Office (CZSO), stated.
The largest part of the deficit results from the balance of the central government sub-sector that ended up with the deficit of CZK 212.4 bn. The local government sector balance ended up with a surplus of CZK 55.3 bn and the social security funds sub-sector (of health insurance companies) ended up with a deficit of CZK 20.1 bn.
Table 1: Notification table of government deficit and debt, the Czech Republic, 2021–2024
Unit | Year | ||||
2021 | 2022 | 2023 | 2024 | ||
Net borrowing/lending of general government | CZK mil. | -312 308 | -216 345 | -285 997 | -177 173 |
General government consolidated gross debt | CZK mil. | 2 566 752 | 2 997 632 | 3 234 146 | 3 492 243 |
Net borrowing/lending of general government as % of the GDP | % | -5.0 | -3.1 | -3.8 | -2.2 |
General government consolidated gross debt as % of the GDP | % | 40.7 | 42.5 | 42.5 | 43.6 |
During spring notifications, the general government sector balance for the year 2023 was also slightly revised; it improved by CZK 2.1 bn mainly owing to updating of data on taxes.
The total general government sector revenue increased in 2024 by 6.8%, y-o-y; in absolute terms, it was an increase by CZK 206.9 bn. Received social contributions, revenue from income taxes and from taxes on production and imports were increasing the most.
The total general government sector expenditure increased in 2024 by 2.9%, y-o-y, i.e. by CZK 98.1 bn. The highest increase was recorded for social benefits paid. On the contrary, the biggest decrease was recorded for subsidies.
In the end of 2024, the relative debt of the general government reached 43.6% of the GDP. In the year-on-year comparison, the relative debt increased by 1.1 p. p. An increase in the nominal GDP contributed to the decrease of the relative amount of the debt (-2.1 p. p.), whereas the nominal growth of the debt contributed in relation to the GDP to an increase by 3.2 p. p.
In the end of 2024, the general government debt increased by CZK 258.1 bn, y-o-y, and reached CZK 3 492.2 bn. A major part of the y-o-y change is due to the issued debt securities (CZK 215.9 bn).
In 2024, the year-on-year change in the debt (the increase by CZK 258.1 bn) was markedly different from the general government sector balance (a deficit of CZK 177.2 bn), which means that the general government sector borrowed by CZK 80.9 bn more than its need to be financed was. This fact was reflected on the assets side by an increase in the value of financial assets held, especially of transferable deposits.
Indicators presented in the Table 1 were transmitted to Eurostat on 31 March 2025.
Notes
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 and serves the assessment of how the Maastricht convergence criteria are complied with. 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 in the given year to finance other sectors of the economy (+) or the need of the general government sector to be financed (−) by other sectors.
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, value in CZK is obtained by means of a contractual exchange rate.
Responsible head at the CZSO: Helena Houžvičková, Director of the Government and Financial Accounts Department, phone: (+420) 704 688 734, e-mail: helena.houzvickova@czso.cz
Contact person: Jaroslav Kahoun, Head of the Government Accounts Unit, phone: (+420) 274 054 232, e-mail: jaroslav.kahoun@czso.cz
Next news release will be published on: 23 April 2025