Less money will go to local development next year

The Ministry for Regional Development had just over 15.2 billion crowns available this year. It follows from the draft budget that next year it will be only about 13.3 billion.

Bartoš did not support the budget as an outgoing member of the government. He justified this by the fact that the Minister of Finance Zbyněk Stanjura (ODS) did not listen to his requests for additional funds to build missing services in some municipalities. “They are economically and socially threatened areas, in which about a quarter of the Czech population lives,” he declared.

The ministry under Bartoš’s leadership subsequently stated that it lacks at least 860 million crowns for co-financing the drawing of funds from European funds. The office claims that, because of this, the Czech Republic does not have to use European resources in the total amount of up to seven billion. According to him, the budget also lacks a billion to help elementary schools in programs where European funds are drawn.

However, according to economist Aleš Bělohradský from the Institute of Economic Studies, Faculty of Social Sciences, Charles University, the Czech Republic is not headed for a subsidy disaster. “National resources in the ministry’s budget remain approximately the same as last year. I don’t see that there should be a fundamental problem,” stated Bělohradský.

In the budget, 1.2 billion crowns are available for co-financing projects from EU funds. The spokesman of the Ministry of Finance, Petr Habáň, said that the department considers this to be sufficient and does not foresee a threat to the flow of European money.

“In the case of financing regional development and schools, the national program Support for the Stabilization and Development of Endangered Areas is key, where we assume that the Ministry of Regional Development took into account all the needs that are a priority in the field of regional development when preparing the budget,” Habáň summarized.

The resort also demanded another 1.3 billion crowns for operating expenses. These should be necessary for solving cyber security issues or the operation of IT systems. But the Ministry of Finance believes that all the necessary money is already in the budget. “The resort must budget expenses in such a way that the key functions of the state are ensured,” Habáň added.

On the contrary, some economists see the cuts in operating expenses as a positive step. “All ministries should save on them,” said Petr Dufek, chief economist of Creditas bank.

Support for municipalities that want to build affordable rental housing should not be in jeopardy either. The Ministry of Finance continues to count on it, perceives it as a project of the entire government. In total, up to ten billion crowns could be spent on the construction of apartments with discounted rent in the next two years.

However, according to the government’s resolution, money will be sought on an ongoing basis. “Today, neither we nor the Ministry of Regional Development are able to make a qualified estimate of how much funding will be needed for these projects next year,” Habáň justified the decision.