Record Budget Deficit Splits Czech Coalition: Motorists and SPD Demand a Rethink

Czech Finance Minister Alena Schillerová presented the draft state budget for 2027 on Monday, with a deficit of CZK 389 billion — the second-largest in the country's history. The figure has sparked outrage among the ruling coalition's partners — the Motorists for Themselves party and the SPD movement — both of which promised voters fiscal discipline ahead of the elections.

According to sources cited by the newspaper, Motorists' ministers and MPs were not only stunned by the sheer size of the deficit but also angered that the ANO movement had failed to inform them of the real figure in advance. "Everyone is disappointed," one party MP said, describing the mood.

Motorists Head to Babiš

Motorists leader Petr Macinka announced that on Thursday he and his fellow party members will meet with Prime Minister Andrej Babiš to voice their objections to the budget. "We really don't like the deficit, and we'll be pushing to bring it down. This will be a serious conversation. If we can't agree on at least some of our proposals, it will be difficult for the party to support the budget," the foreign minister said before departing for Slovakia.

The party has set itself two goals: to persuade its coalition partner to lower the deficit in the 2027 budget draft, and to lay the groundwork for a smaller deficit already in 2028. "I would like the government to approve a budget in September with a deficit below 389 billion crowns," Macinka specified.

He also criticized individual ministries' spending requests as "inflated," arguing that savings could be found across many budget lines. The party's economic expert, MP Vladimír Pikora, said he had drawn up 22 measures that could save 80 billion crowns in 2028 and expects the final 2027 deficit to be trimmed by "the lower tens of billions."

Party MP Gabriela Sedláčková said Schillerová had promised the Motorists that the deficit would not grow in subsequent years. Pikora will arrive at Thursday's meeting with a specific figure for how much the deficit should be cut.

SPD Unhappy Too

The SPD, another coalition partner, is likewise outraged by a deficit approaching 400 billion crowns. "There will certainly be negotiations — we have a parliamentary group meeting next week, and the issue will be discussed throughout September. We will push for the deficit to be reduced," said MP Jan Hrnčíř.

SPD chairman and Chamber of Deputies Speaker Tomio Okamura was more specific, saying he intends to push for an end to benefit payments to foreigners, including Ukrainian refugees, and for stripping non-governmental organizations of their right to state support. "Our parliamentary group is extremely unhappy with the size of the deficit. I understand that we need to plug the holes left by [former Prime Minister Petr] Fiala's fraudulent budget. But we see room for further savings," Okamura told the lower house of parliament.

David Jahr, a political scientist at Charles University's Faculty of Social Sciences, notes that just a year ago the country was plastered with Motorists billboards promising to fix state finances, with the party even claiming it planned to achieve a balanced or surplus budget within four years. "If their leaders stayed silent now, they would look ridiculous in voters' eyes," Jahr says, adding that the sharp statements may also reflect a fight for an electorate shared with other parties.

The Finance Ministry's Position

Schillerová insists that the growing deficit was unavoidable and stems primarily from the budget policy of the previous government led by Petr Fiala. On Tuesday afternoon, the minister said spending cuts are possible, but that proposals for them must come from the ministries themselves. Based on previous "tough" negotiations with government departments, she estimated the state could save at most a few billion crowns. Schillerová will also take part in Thursday's meeting between the Motorists and the prime minister.

According to the Finance Ministry's medium-term forecast, the budget deficit should gradually decline: to 360 billion crowns in 2028 and to 250 billion in 2029. The forecast is based on expected economic trends and legislation that is already close to final approval.

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Source: seznamzpravy.cz