Babiš: We'll start consolidating the budget once hospitals and roads are in order

Czech Prime Minister Andrej Babiš said in Saturday's edition of TV Nova's programme "Za pět minut dvanáct" that consolidating public finances will only be possible once the country has "ideal hospitals," a completed transport network, and decent salaries for soldiers and police officers. The remark came shortly after Finance Minister Alena Schillerová said the budget deficit next year would exceed this year's planned 310 billion crowns.

"We simply have a duty to take care of people, and that's what we're doing," Babiš said, dismissing suggestions that the rising national debt poses a problem for the country. According to the Finance Ministry's forecast, Czechia's public debt will rise to 45.8% of GDP this year, up from 44.2% last year. Even so, the country will remain among the least indebted EU member states.

The budget deficit has been growing for years

Babiš declined to give an exact figure for next year's deficit, pointing instead to the fiscal-structural plan Czechia submitted to the European Commission, under which the structural deficit of public finances must not exceed 2.9% of GDP. With projected GDP of roughly 9.5 trillion crowns, that ceiling works out to around 280 billion crowns — though this figure covers not just the state budget but also the finances of municipalities and regions, which traditionally close the year in surplus.

Earlier, following three days of talks with ministers, Schillerová said next year's deficit would exceed the current 310 billion crowns but stay under 400 billion. Czechia's record deficit remains 2021's 419.7 billion crowns; the 300-billion mark was also breached in 2020 and 2022. Before the COVID-19 pandemic, deficits were considerably more modest — the budget crossed the 100-billion-crown threshold only five times.

Analysts polled by ČTK noted that during a period of economic growth, it would make more sense to consolidate public finances rather than let the deficit grow further, adding that part of the budget gap is now being driven not just by investment but by current expenditure as well.

Not yet thinking about a presidential candidate

In the same interview, Babiš said he is not currently considering possible presidential candidates from his coalition. "That's not a topic for us right now — we're not thinking about it at all," he said, noting that he is busy dealing with the drought, healthcare, next year's draft state budget, the EU's multiannual financial framework, and the upcoming municipal and Senate elections. "Once all that is over, Christmas will be here. That's when we'll think about it and see," the prime minister added.

Earlier, in January, at ANO's party congress, Babiš spoke about the possibility of ANO, SPD and the Motorists fielding a single joint presidential candidate, suggesting that this person need not necessarily be a politician. He has now admitted he has changed his mind on the matter. Babiš described his relationship with current President Petr Pavel as good, stressing that he does not comment on the president's actions — although he has previously said several times that Pavel has effectively already begun campaigning for re-election.

Pavel himself said in July that he would announce his decision on whether to run again at an appropriate time next year. Babiš also praised the working relationship within the ruling coalition with SPD and the Motorists, contrasting it with the more strained cooperation with the ČSSD and KDU-ČSL during previous ANO-led governments. He noted, however, that he does not share his current coalition partners' style of communication, and once again lamented the absence of a majoritarian electoral system in Czechia: "We would govern alone, and everything would be just fine."

Source: seznamzpravy.cz