The Czech Finance Ministry has unveiled its 2026 draft budget, projecting a deficit of CZK 286 billion. The shortfall stems mainly from extra spending on defence and energy, while overall state expenditure is set to climb to CZK 2.38 trillion.
The Ministry of Finance has unveiled the draft state budget for 2026, projecting a deficit of CZK 286 billion – largely due to additional spending on defence and energy. Without these extraordinary items, the shortfall would be lower.
According to the ministry, the budget foresees a deficit of CZK 286 billion. Excluding one-off measures – including extra allocations for defence and energy projects – the gap would amount to CZK 237 billion.
Total state expenditure next year is expected to reach CZK 2.38 trillion, with revenues projected at CZK 2.09 trillion. Two exceptional items are driving the high deficit: CZK 30.7 billion allocated to defence spending beyond the legally required NATO target of 2 per cent of GDP, and CZK 18.3 billion earmarked for preparations to build two new reactor units at the Dukovany nuclear power plant.
Finance Minister Zbyněk Stanjura described it as a “budget for security and energy sovereignty”. In addition to record investments and higher funding for research, education and social services, the draft meets all legal requirements, he stressed. He particularly highlighted that the structural deficit is set to fall to 1.75 per cent of GDP.
Amendments remain possible during the parliamentary process. The government intends to approve the draft by the end of September and pass it on to the Chamber of Deputies. However, with parliamentary elections scheduled for early October, it will be the new chamber that ultimately decides on the 2026 state budget.
