The government of the Czech Republic has approved the draft state budget for 2026, which envisages total expenditure of CZK 2,408.7 billion and revenues of CZK 2,122.7 billion. As a result, the planned deficit is CZK 286 billion, which will now head to the Chamber of Deputies for discussion.

The key priorities of the proposal are investment in infrastructure, increased spending on defence, support for science and research, and funding for the construction of two new nuclear units at Dukovany. Finance Minister Zbyněk Stanjura zdůraznil: "As a responsible government, we have set the budget in such a way that we do not borrow for the state's operating expenses, but instead make record investments."

A pair of exceptional items amounting to CZK 49 billion has a major impact on the resulting deficit. Specifically, these are defence spending beyond NATO commitments (CZK 30.7 billion) and state loan for the construction of new nuclear units at Dukovany (Without this spending, the deficit would be CZK 237 billion, CZK 4 billion less than in 2025.

The 2026 budget is heavily investment-led. More than 272 miliard Kč, which is the highest amount ever. There has also been a record increase in funding for science and research, which will reach 55,7 miliardy Kč, tedy 0,63 % HDP.

Defence spending will exceed the statutory commitment of 2 % of GDP and reach the level of 2,35 % HDP, tedy 206,5 miliardy Kč. "Defence spending is an investment in the security of citizens and the stability of the state," said Minister Stanjura. The funds will go not only to the army, but also to cyber security and the state material reserves.

The budget also reflects the needs of citizens in the areas of education, social spending and transport. Ministry of Education will receive CZK 281.7 billion, of which CZK 2.8 billion will go to universities and CZK 2.4 billion to salaries of employees in regional education. Ministry of Transport will manage CZK 128.7 billion, part of the money will be used to co-finance European projects and boost investment spending. Ministry of Labour and Social Affairs remains the largest chapter with a budget of almost CZK 994 billion, of which CZK 739.6 billion is for pensions.

The draft budget also reflects an emphasis on increasing the salaries of civil servants. The guaranteed salary level for teachers in regional education will remain at 130 % of the average salary. The salaries of soldiers and members of the security forces will increase by 5 to 7.5 %, while employees of authorities and other state institutions will receive an average increase of CZK 2,200 per month.

A new feature is the introduction of performance budgeting, which, according to the Finance Minister, is intended to help "better manage the state, measure results and strengthen the confidence of citizens and companies that their taxes are being used in a meaningful way". This approach, common in many developed countries, links financial resources to specific targets and measurable indicators.

The bill on the state budget for 2026 will be discussed again by the newly established Chamber of Deputies after the elections.

Ministry of Finance/gnews.cz - GH