President of the Republic signs amendment to the 2024 budget increasing spending by CZK 30 billion on flood damage

President of the Republic Petr Pavel signed the amendment into law on 3 October 2024 on the state budget for 2024, which increased the state's authorised expenditure by CZK 30 billion for the rehabilitation of flood damage in the affected regions. The amendment was discussed on 1 October The Chamber of Deputies in a state of legislative emergency to ensure that money for the restoration of infrastructure and property reaches those who need help after the floods as quickly as possible.

"The amount was proposed after an analysis of flood damage from 1997 and 2002 and is a rough proposal. Thanks to the increase in expenditure by CZK 30 billion, the government will be able to quickly address flood damage and announce programmes for its rehabilitation with sufficient allocation of financial resources. Helping to rebuild the area takes precedence over budgetary responsibility. I say this as Finance Minister with full knowledge of what this sentence means," said the finance minister Zbyněk Stanjura. 

The amendment increased total state budget expenditures to CZK 2222 billion, and the overall budget deficit increased accordingly to CZK 282 billion from CZK 252 billion. Flood expenditures strengthened the General Treasury chapter (to CZK 303.6 billion), from where they will be distributed among regions and individual state subsidy programmes after the damage is counted. 

The flood expenditure is still only a rough estimate at the upper limit, as the damage has not yet been quantified. Actual expenditure on the reconstruction of flood-affected areas will depend on specific grant programmes. Thus, the approved flood reserve may not actually be used in full. Extraordinary flood expenditure should not enter the structural deficit. 

The amendment will take effect on the day of its publication in the Collection of Laws so that the state can quickly channel aid to the affected regions.

mfcr.cz/ gnews - RoZ