“Although the president had critical reservations about the budget, he decided not to stand in its way. Budgetary policy is primarily a matter for the government, which implements its political priorities through it. The government will then be accountable to the citizens for the consequences of its budget policy,” the presidential office said, reminding that the head of state has reservations especially about reducing defense spending.
“Expenditure on defense will hardly exceed the obligation established by law in the amount of 2 percent of GDP, let alone obligations to allies,” Hrad reminded. Likewise, the proposal from the workshop of the government of Andrej Babiš (ANO) omits the commitment to increase defense spending to 3.5 percent of GDP.
“Along with the budget, the government did not present a medium-term budget outlook for 2027 and 2028, which would show plans for increasing defense spending in the coming years,” the president recalled, pointing to the security situation in the world.
In addition, the head of state also pointed out the fact that the approved deficit is in violation of the law on budgetary responsibility.
“Instead of further necessary fiscal consolidation, this budget widens the gap between income and expenditure,” the president added.
The previous government of Prime Minister Petr Fiala (ODS) prepared a draft budget with a planned deficit of 286 billion crowns. The new cabinet decided to present its own proposal with an increased deficit, which, according to it, is based on the real state of public finances.
The President discussed the proposal and his reservations about it repeatedly with Prime Minister Babiš and Finance Minister Alena Schillerová (ANO).
