The Czech government has approved an increase in the state budget deficit to 500 billion Czech crowns (21.3 billion U.S. dollars) this year citing the effects of the coronavirus pandemic, the Ministry of Finance said on Monday, Trend reports citing Xinhua.
The amendment envisages total revenues of about 1.36 trillion crowns and expenditures of 1.86 trillion crowns for this year.
"The main goal of this amendment is to massively support investments, especially the investment projects of municipalities and regions," said Minister of Finance Alena Schillerova.
The pandemic has significantly disrupted the country's economic activities, and there is a sizeable decline in tax revenues. At the same time, it is necessary to spend more from the state budget to combat the pandemic and to support the economy, said the ministry.
To this end, the State Budget Act for 2020 has been amended twice. The deficit was gradually increased from the original 40 billion crowns to 300 billion crowns. However, in light of the decline in tax revenues and the other effects of the government's support measures, even these adjustments are not sufficient, therefore it is necessary to adopt further amendments, the ministry said.