Czech Government Seeks Savings After Budget Gap Hit $14 Billion

The Czech Republic’s budget deficit exceeded the target for 2025, leaving the new government scrambling to find savings and financing for its priorities.

The fiscal gap was 290.7 billion koruna ($14 billion) last year, exceeding the approved limit by about 20% and rising for the first time in four years. Prime Minister Andrej Babis’s administration is now working on proposals for 2026 after it rejected a plan prepared by its predecessor.