As recently as in 2009, the Czech budget deficit fell by 1% of GDP and improved to nearly the Maastricht fiscal threshold. To be more specific the general budget deficit was down by CZK 64 billion, thus hitting -3.1% of GDP according to EU methodology (ESA95). Recall that last year’s state budget
figures did not indicate much of an improvement; however, owing to further transactions by the central government, the public sector deficit shrank significantly.
By contrast, local budgets and social security funds remained unchanged vis-a-vis 2010. Although the general government deficit fell significantly on the year-on-year basis, public debt continued to rise – not only in nominal terms (to CZK 1.57 trillion), but also as a share of GDP, to 41.1%.