Czech government to file 2027 budget with deficit trimmed by three billion crowns

After coalition talks, the draft state budget for 2027 is set to be submitted to parliament on Monday. The new proposal lowers the deficit by roughly three billion crowns compared with the original CZK 389 billion outlined by Finance Minister Alena Schillerová. Despite the cut, the deficit would remain the second-largest since the Czech Republic’s founding. The coalition has not detailed which expenditures will be reduced or how revenues will be raised, and critics say the higher deficit still funds routine spending.