One of the key tasks of the Czech Fiscal Council (CFC) under Act No. 23/2017 Coll., on the Rules of Budgetary Responsibility, as amended (the Act), is the regular annual preparation of the Report on the Long-Term Sustainability of Public Finances (the Long-Term Sustainability Report) and its submission to the Chamber of Deputies of the Parliament of the Czech Republic.
As in previous Long-Term Sustainability Reports, this year’s CFC assesses the situation of Czech public finances from a medium- and long-term perspective. In the first case, the key indicator is the current structural balance, while in the second case it is the projected path of public debt over a 50-year horizon, which shows the extent of long-term fiscal imbalances. Fortunately, the Czech public finances have already moved away from the high deficits in the 5–6% of GDP range typical of the years associated with the COVID-19 pandemic (2020–2021), but they have still not taken a clear trajectory towards sustainable and macroeconomically sound levels defined by the original text of the Act.
The whole report is available here.