Czech Budget Hawks Breathe Sigh of Relief Over January Surplus

(Bloomberg) -- The Czech Republic is starting the year with a budget surplus for the first time since 2019, giving a boost to the conservative government's crusade against rising debt.

Revenue exceeded expenditure by 3.9 billion koruna ($160 million) in January, compared with a deficit of 31.5 billion koruna a year earlier, according to Finance Ministry data published on Tuesday. 

The January figure alone has limited significance for the full year fiscal performance, and the ministry acknowledged the balance was partly influenced by the fact that the country is now running on a provisional budget, which limits discretionary spending. 

But officials still touted the result as confirmation of their pledge to reverse pandemic-induced deficits, which was one of the top campaign themes that propelled a group of five parties to win a surprising majority in October elections and create a coalition cabinet. 

Read more about the government's plan to cut spending

“I'm pleased that I can present a state budget surplus after a long 35 months,” Finance Minister Zbynek Stanjura said in a statement.  “Of course it's only a partial relief for me because we are at the beginning of our commitment to stop the record growth of debt and return our country to sustainable finances.” 

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