Babiš's Coalition Agrees on Budget: Deficit to Shrink, Pensions to Rise

Parties forming Czechia's new governing coalition have agreed on the parameters of the state budget. The announcement came from Petr Macinka, leader of the Motorists movement, and SPD chairman Tomio Okamura following coalition talks.

According to Macinka, proposals to be unveiled this autumn will cut the budget deficit by a further 20 billion crowns from the planned 389 billion. Okamura later specified the total reduction as 23 billion crowns. Both politicians noted that the deficit should shrink by 60 billion crowns by 2028.

Defense and Military Spending

Macinka said Czechia will maintain its commitment to spend 2% of GDP on defense, noting the country cannot afford to be the only NATO member falling short of that target. Okamura revealed that his party's proposal to cut the defense ministry's budget by 7.5 billion crowns was rejected. "Defense spending will not be reduced," he said. According to him, soldiers will receive upgraded equipment and better food, while civilian ministry staff will see a pay rise of roughly 5,000 crowns a month.

Pensions and Refugee Benefits

Okamura also said the coalition had agreed to cut payments to Ukrainian refugees by about 4 billion crowns. In addition, under the coalition agreement, pensions are set to rise starting in January — the SPD leader did not give an exact figure, saying only that ministers would announce specific numbers after the government's session. He noted that the overall indexation should come close to 500 crowns, compared with the 270-crown increase mandated by current law.

"We're leaving these talks very satisfied," Okamura concluded. The coalition plans to tackle the question of funding for Czech Television and Czech Radio only after the municipal and Senate elections.

Source: novinky.cz