Government finances remained in deficit in Q2

The general government balance ended the second quarter of 2024 in deficit, equivalent to 0.2 % of GDP. The general government debt ratio reached 42.6 % of GDP.

The general government deficit in Q2 2024 reached CZK 3.5 billion, an improvement of CZK 14.0 billion year-on-year. The central government operated with a deficit of CZK 50.8 billion, which decreased by CZK 13.6 billion year-on-year. Local government ended the year with a surplus of CZK 50.5 billion, an increase of CZK 4.8 billion year-on-year. Social security funds (health insurance companies) ended in a deficit of CZK 3.1 billion.

"In the second quarter of 2024, general government operated with a deficit of CZK 3.5 billion, which in relative terms represented 0.2 % of GDP. The relative debt ratio of the general government sector remained unchanged year-on-year at 42.6 % of GDP," said the Director of the Government and Financial Accounts Department of the CZSO Helena Houžvičková.

General government balance, Q2 2022 - Q2 2024

Note: The data in the table are not seasonally adjusted and cannot be compared quarter-on-quarter.

Total general government revenue increased by 5.6 % yoy to reach 42.0 % of GDP. The year-on-year growth in revenue was mainly driven by social contributions received, taxes on production and imports and taxes on pensions. A decrease was recorded in property income. Total general government expenditure increased by 3.8 % yoy to reach 42.2 % of GDP. The largest increase was in expenditure on social benefits.

Nominal general government debt rose by CZK 169.3 billion year on year to CZK 3,320.0 billion. The general government debt ratio remained unchanged year-on-year at 42.6 % of GDP, the effect of the nominal change in debt was +2.2 pp, while the rising nominal GDP contributed to the decline in debt by -2.2 pp, while nominal GDP growth contributed to a - 0.5 pp decrease in debt, resulting in a quarter-on-quarter reduction in the debt ratio of 0.8 pp.

In terms of the individual components of debt, the year-on-year increase was recorded mainly in securities issued (CZK 179.4 billion), while borrowings fell (CZK -16.8 billion).

General government debt, Q2 2022 - Q2 2024

The general government balance, adjusted for seasonal and calendar effects, ended in a deficit of CZK 47.8 billion, corresponding to 2.4 % of GDP. The following graph illustrates the evolution of the general government balance net of seasonal and calendar effects.
Seasonally adjusted general government balance, Q2 2022 - Q2 2024

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