The Czech Finance Ministry published a multi-year fiscal projection on Tuesday that sees the countrys budget shortfall rising to 2.8% of gross domestic product in 2027, up from a projected 2.6% in 2026, before easing thereafter.
Those numbers exceed the estimates put forward by the previous government that left office in late 2025. Despite the upward revision, the ministry emphasized the plan keeps the deficit under the European Unions 3% ceiling, which several EU members currently surpass.
"The plan keeps Czechia among Europes best performers while allowing the undertaking of key pro-growth reforms," Finance Minister Alena Schillerova said in a statement accompanying the plan.
The current administration has altered national fiscal rules, arguing the prior framework was excessively restrictive and would have forced severe spending cuts to prepare next years budget. Opponents have cautioned that those changes risk producing a substantial rise in the deficit.
Under the new projections, the deficit is expected to narrow to 2.1% of GDP in 2028, 1.7% in 2029 and 1.3% in 2030. By contrast, the earlier 2024 plan estimated this years deficit at 1.7%, with forecasts of 0.9% in 2027 and 0.5% in 2028.
The ministrys forecast also shows gross government debt peaking at 46.8% of GDP in 2027, followed by a modest reduction in subsequent years.
Officials said the cabinet will debate the fiscal plan on June 15. Following that discussion, the government intends to submit the plan to the European Commission.
The document frames the measures as balancing continued compliance with EU fiscal limits and providing space for reform measures intended to support growth, while acknowledging that critics view the relaxation of rules as a potential source of larger deficits.