Public finance experts warn President Pavel of unsustainable fiscal trajectory

President Petr Pavel convened a panel of public-finance experts at Prague Castle to review the nation’s fiscal outlook. Economists Vladimír Bezděk, Tomáš Holub, Mojmír Hampl, Jana Matesová and sociologist Daniel Prokop warned that current policies are pushing public finances toward an unsustainable direction, especially as debt-service costs climb during a period of growth. They criticized the lack of public debate on budget fundamentals during spring and summer months.

The proposed 2027 state budget foresees a deficit of 386 billion korunas, the second-largest since the country’s founding, while the 2028 fiscal-structural plan aims to cut the deficit to 2% of GDP (about 130-140 billion korunas). The president praised the budget’s relative transparency despite the high shortfall, and officials noted a modest rise in projected revenues and expenditures for the next year.