Babiš Promised Not to Touch Budget Rules — His Government Pushed the Change Through Over the President's Veto

Back in October 2025, Andrej Babiš told Czech television that "we will not be changing the fiscal responsibility law," so that no headlines would later claim the government was doing the opposite. At the time, the state budget deficit stood at 310 billion crowns. Yet just a few months later, his government initiated changes to exactly that law.

On 27 January 2026, the Babiš cabinet submitted a bill to the Chamber of Deputies that would substantially loosen the existing budget constraints. Lawmakers approved it in May, with 91 votes in favour and 68 against. The Senate sent the bill back with amendments, but the lower house rejected them.

The President Vetoed It, but the Veto Was Overridden

In late July, President Petr Pavel vetoed the law. He explained his decision by noting that if the state sets its own rules to make it easier to ramp up spending through debt, all citizens will eventually foot the bill for those decisions. However, deputies from the governing coalition overrode the presidential veto, with 104 voting in favour and 72 against.

What Changes in Practice

Under the new rules, strategic infrastructure projects will no longer count toward the caps on state spending. In addition, if the security situation deteriorates, total budget spending can be increased by up to ten percent without prior approval from the Chamber of Deputies — a decision by the government's State Security Council will suffice.

Source: novinky.cz