The Czech Parliament has approved a budget for 2026 that projects a deficit of 310 billion Czech koruna (approximately $14.75 billion). This figure marks an increase from the 290.7 billion koruna deficit recorded in 2025.
According to the Ministry of Finance, the overall fiscal deficit is expected to rise to 2.2% of GDP, up from 2% in the previous year. The increase in the deficit is attributed to higher expenditures on salaries and subsidies, while defense spending has been reduced.
Specifically, funding for the Ministry of Defense has been cut by 21 billion koruna, with an additional reduction of 0.8 billion koruna in other areas. Consequently, defense expenditures will account for approximately 2.07% of GDP.
Additionally, the budget reflects a decrease in spending on foreign humanitarian aid, which includes support for Ukraine.
In contrast, the government has increased funding for social programs, aligning with the campaign promises of the ruling coalition. Key allocations include:
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800 million koruna for the development of sports infrastructure;
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120 million koruna for the MEDEVAC humanitarian program;
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100 million koruna for addiction prevention;
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50 million koruna for extracurricular education for children;
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50 million koruna for housing construction support.
Once signed by the President, the new budget will replace a temporary financial plan that has been in place due to delays in the legislative process following last year’s elections.
Czech Finance Minister Alena Schillerova stated that the new budget is more realistic than its predecessors. “After four long years, the Chamber of Deputies is discussing a budget that does not conceal the true state of public finances and does not pretend that the deficit is smaller by ignoring inevitable expenses,” she remarked.
The Czech Parliament has approved a budget for 2026 that anticipates a deficit of 310 billion koruna, reflecting increased social spending and reduced defense allocations. The budget aims to address pressing financial realities while supporting various social initiatives.