The national debt increased by 96.2 billion crowns to 3.207 trillion crowns in the first half of the year

In the first half of this year, the Czech national debt increased by 96.2 billion crowns to 3.207 trillion crowns. In the second quarter alone, the national debt decreased by 13.8 billion crowns. This is according to the quarterly report on the management of the national debt, published today by the Ministry of Finance. Theoretically, each Czech owes 295,326 crowns. The debt ratio was 41.3 percent of gross domestic product (GDP), up 0.5 percentage points since the beginning of the year.

According to the ministry, the increase in debt is mainly due to the sale of government bonds and government treasury bills in the first half of the year in order to continuously cover the state budget deficit. At the end of June, the budget deficit was 178.6 billion crowns, the state plans to run a deficit of 252 billion crowns for the whole year.

The debt ratio slightly exceeded the level of 2022, when it was 41.1 percent of GDP. Indebtedness values ​​decreased compared to previous data, as the Czech Statistical Office (CZSO) revised the GDP values ​​for the last 30 years in June, taking into account changes in the methodology throughout the European Union. Nominal GDP increased in most years after the revision, which was reflected in a reduction in the debt ratio.

In the first half of the year, the Ministry of Finance sold crown bonds with a maturity of more than one year in the nominal value of 161.4 billion crowns. At the same time, at the end of May, the state properly repaid previously issued bonds for 69.8 billion crowns. Crown treasury bills, i.e. bonds with a maturity of less than one year, were also used to finance the state. Their net issue, i.e. sales adjusted for the volume of redeemed vouchers, reached 25 billion crowns in the first half of the year. The net issue of euro treasury bills was 0.5 billion euros (12.6 billion crowns) in the first half of the year.

The national debt is made up of the government’s debts and arises primarily from the accumulation of state budget deficits. It is financed by treasury bills, government bonds, direct loans or loans from the European Investment Bank.

Development of the national debt (in billions of crowns)