On Tuesday, Prime Minister Petr Fiala’s government unanimously approved the draft state budget for 2026. The plan includes significantly higher spending on national defence and record-level investments across a wide range of sectors.
For the coming year, the Czech Republic anticipates revenues of CZK 2,122.7 billion and expenditures of CZK 2,408.7 billion, according to the 2026 draft budget prepared by Fiala’s government. “This is a budget that not only invests in the future of the Czech Republic, but also makes a significant contribution to our security and energy independence,” explained Prime Minister Fiala.
Compared with the August draft, both revenues and expenditures have been increased by around CZK 28 billion based on current macroeconomic forecasts. The planned public finance deficit remains unchanged at CZK 286 billion, equivalent to 2% of GDP. “A record 11% of total expenditure in this budget is earmarked for investment. In absolute terms, this amounts to more than CZK 272 billion. I am very pleased that we are continuing the trend of record investment, as this is beneficial for the future of the Czech Republic,” Fiala emphasised.
More funding for education and infrastructure
Compared with the original draft, the government has increased the Ministry of Transport’s budget by CZK 22 billion and the Ministry of Education’s by CZK 5.3 billion. For the first time, more than CZK 55 billion will be allocated to science and research – a historic high.
The Ministry of Regional Development’s budget has also been raised by CZK 1.8 billion, partly to support housing promotion projects. The Ministry of Labour and Social Affairs will receive an additional CZK 3.4 billion to implement projects under the National Recovery Plan and to fund wage increases, particularly for staff at labour offices and the Czech Social Security Administration.
