Czech Fiscal Zeal to Slow in Face of War, Finance Minister Says
- Stanjura says pace of deficit cuts to ebb as growth suffers
- Eroded tax revenue, higher defense spending shift priorities
A man takes a photo of a destroyed Russian military tank in Dmytrivka, Ukraine on April 21.
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The Czech Republic’s finance chief said the government will need to scale back its ambitions to slash the nation’s record deficit as the war in Ukraine grinds economic growth to a halt and prompts higher defense spending.
Finance Minister Zbynek Stanjura said the flagship pledge of the five-party coalition, which ousted the government of billionaire Andrej Babis last year partly on a platform to reverse his spending agenda, will have to be tempered. The alliance’s priorities are shifting with dampened tax revenue, the highest inflation in 24 years and new spending on defense and energy security.