Debt Hits 1.8 Trillion In Q3

Financial Chart

Czech government debt grew by CZK 5.4 billion to CZK 1.7835 trillion last year. However, the debt ratio fell by 1.91 percentage points to 31.97 percent of gross domestic product (GDP). According to data published today by the Czech Statistical Office. Compared to the second quarter, debt fell by CZK 33.8 billion, and the debt ratio fell by 1.18 percentage points.

Total government revenue increased by 6.6 percent year on year in the third quarter. According to statistics, this was mainly due to the growth of taxes on income, social contributions or property income. Total government expenditures increased by 7.5 percent. The growth of compensation of employees, intermediate consumption, and social transfers in kind contributed most to their growth.

The total general government sector revenues increased by 6.6%, y-o-y. Especially the following contributed to the y-o-y increase in revenues: increase of taxes on income (+10.8% to CZK 116.0 bn), growth of revenues from received social contributions (+6.7% to CZK 219.0 bn), increase of property income (+14.1% to CZK 6.4 bn) and other current transfers (+7.1% to CZK 12.4 bn). The total government expenditure increased by 7.5%, y-o-y. The following contributed the most to the expenditure growth: increase of compensation of employees (+9.7% to CZK 140.6 bn), increase of intermediate consumption (+8.0% to CZK 83.8 bn) and increase of social transfers in kind (+11.4% to CZK 42.1 bn),.

The government debt ratio decreased from 33.88% to 31.97% of the GDP in the year-on-year comparison. The increasing nominal GDP contributed to a decrease in indebtedness by 2.01 p. p. The nominal debt of the general government increased by CZK 5.4 bn to CZK 1 783.5 bn, y-o-y, and thus contributed to the increase of the debt ratio in amount 0.10 p. p. In the quarter-on-quarter comparison, the debt ratio decreased by 1.18 p. p., which was contributed to by the increasing nominal GDP (0.56 p. p.) as well as by the decreasing debt (0.62 p. p.), which dropped by CZK 33.8 bn.

Regarding the debt structure, the y-o-y decrease of the debt was caused by a decrease in the volume of received loans (CZK −40.8 bn). On the contrary, the value of issued debt securities increased by 2.9%. The volume of short-term securities dropped by CZK 42.5 bn, while the value of long-term securities increased by CZK 88.3 bn, y-o-y. In the q-o-q comparison, there was decrease in all components of the debt. Issued debt securities with the share of 91.8% remain to be the main debt instrument.