The State's budget deficit deepened to CZK 26bn in May from CZK 17bn at the end of April. The twelve month budget deficit reached CZK 111.4bn, which is the highest deficit in history. Income increased by 1.3% y/y while expenses increased by 4.8%. Social benefit spending increased by 9.3% as a result of the increases in parental and housing contributions. Measures adopted before last year’s parliamentary elections have been making themselves felt in the government's finances.