On Wednesday, after more than two months of the provisional budget, the Czech deputies approved the draft law on the state budget for 2026, which with a deficit of 310 billion crowns (approximately 12.7 billion euros) submitted by the government of Andrej Babiš. While she claims that the budget is finally realistic after years, according to the opposition, it is irresponsible.
Opposition politicians criticized the amount of the deficit in particular and also lower defense spending than the original proposal submitted by Petr Fiala’s government contained. 104 of the 191 deputies present voted for the current proposal, 87 were against it, reports TASR correspondent in Prague.
Voting lasted more than an hour and a half, because the deputies presented more than 100 amending proposals for transfers of funds between individual chapters. However, only coalition ones passed – for example, 800 million crowns were transferred to sports, 120 million to humanitarian aid to the Ministry of the Interior, and 100 million to combat addictions.
The most criticized part of the budget intended for defense remained unchanged, so the ministry will manage with the sum of 155 billion crowns (almost 6.4 billion euros), which is approximately 30 billion less than the former government proposed for it. The Czech Republic’s planned defense spending was also criticized last week by the US ambassador to the Czech Republic, Nicholas Merrick, who warned the government to fulfill its alliance obligations. During his visit to Germany on Tuesday (March 10), Babiš stated that the Czech Republic is aware of its obligations and will fulfill them.
The chairman of the opposition ODS, Martin Kupka, commented on the proposal as a “budget rodeo” that destroys the responsible management of the Czech Republic. He also called for an increase in defense spending. However, according to Finance Minister Alena Schillerová (ANO), it is the budget is true, realistic and, unlike Fiala’s government, does not hide the true state of public finances.
She pointed out that she is “not excited” about the deficit, but considers the budget to be much better than, according to her, the deceptive balance sheet of the former government. “I would also imagine a lower number. How am I supposed to be happy with a deficit of 310 billion as a finance minister, especially when I am one of only three finance ministers in our modern history who managed a surplus or a balanced budget? But I believe that we will put the public finances in order again,” she emphasized.
The opposition MPs also pointed out that the proposal violates the Budget Responsibility Act, which was also stated by the National Budget Council. “Perhaps for the first time in the history of this House, you have passed a state budget here that is contrary to the existing law. All those who raised their hands for this bear responsibility for this.” noted the chairman of the KDU-ČSL, Marek Výborný. Schiller has repeatedly denied violating the law.
Before signing the budget, President Petr Pavel wants to talk not only with the Minister of Finance, but also with Prime Minister Babiš. However, he announced that he would not veto the budget, even in spite of reservations, for example on defense spending.
