Czech President Petr Pavel emphasized that the government is primarily responsible for the shape of the state budget, and its assessment belongs to Parliament and the public. He also recalled that during his tenure, he has not vetoed any state budget. However, he did act differently in the case of a recent change to the rules for public budgets, which he returned to the Chamber of Deputies in July.
President Petr Pavel stated on Tuesday at Láany Castle that he considers the state budget primarily as a tool of the government, and its form should be assessed by Parliament and the public. He recalled that during his time in office, he has not vetoed any law on the state budget, despite having reservations about individual budgets.
This approach is consistent with previous official statements from Prague Castle. When Pavel signed the 2026 state budget in March of this year, the presidential office stated that budgetary policy is primarily the responsibility of the government, which implements its political priorities through it and is accountable to citizens for their consequences.
The state budget of the Czech Republic for 2026 projects revenues of approximately 2.12 trillion crowns and expenditures of nearly 2.43 trillion crowns. The planned deficit is 310 billion crowns. When signing it, Pavel pointed out, among other things, the size of the deficit, the development of debt, and certain parameters of defense spending, but he did not use his right to veto.
The Difference Between the Budget and a Change in Rules
President Pavel acted differently on July 22nd, when he returned to the Chamber of Deputies a law amending certain rules for managing public budgets. This was not a veto of the state budget itself, but a legislative change that would affect the rules by which the government can manage public funds.
In his official justification, Pavel cited two main reasons. According to the president, the amendment could jeopardize the long-term sustainability of public finances and also significantly weaken parliamentary control over budgetary processes.
The president criticized in particular the expansion of the possibilities under which the government could exceed certain expenditures approved by Parliament. In certain extraordinary situations, according to the new rules, the government could increase spending by up to ten percent. The changes relate, among other things, to security, defense, and selected strategic infrastructure projects.
The Ministry of Finance rejects President Pavel's arguments. The government claims that greater budgetary flexibility is necessary primarily for financing defense, large investments, and a possible response to extraordinary security situations.
Pavel's statement on Tuesday from Láany thus confirms the difference between his approach to a specific annual budget and to long-term changes in fiscal rules. While he considers the allocation of funds in each individual budget to be primarily the responsibility of the government and Parliament, he used his power to veto when it came to changes in systemic rules.
The Chamber of Deputies can reconsider the vetoed amendment and override the president's decision. This requires at least 101 votes from all members of parliament.