Prague - The Czech state budget showed a Kc9.5bn gap at the end of May, posting deficit for the first time since the beginning of this year, while in April it showed a surplus of almost Kc27bn, the Finance Ministry said today.
České bankovky, koruny, muzeum České národní banky, bankovní trezor - ilustrační foto. ČTK Horázný Josef, Fotobanka ČTK
The figure is nevertheless the best May result since at least 2000, the ministry said. In May last year, the budget showed a deficit of nearly Kc40bn. The budget approved for the entire 2014 envisages a deficit of Kc112bn.
Total budget revenues grew by Kc34.4bn year-on-year to Kc476.3bn in May. Tax revenues excluding social insurance payments rose by Kc19.5bn to Kc220bn.
Total budget expenditures increased by Kc4.1bn to Kc485.8bn. The figure was influenced by an advance payment for regional schools in the amount of Kc13.1bn paid in May. Last year, this payment was made in April.
Value added tax (VAT) collection at the end of May equalled Kc97bn, up by 9 percent year-on-year. The relatively sharp year-on-year growth in VAT revenue was also caused by the fact that the Financial Administration had not yet refunded part of excessive VAT deductions, related to the taxable period ending on December 31, 2013, the Finance Ministry said.
Excise duty collection rose by Kc7.1bn to Kc61.1bn. Revenues from excise duty on tobacco products reached Kc26.2bn, up by Kc5.1bn on the year. The relatively high collection is related to retailers´ stocking up with tobacco products before the increase in tax rates for tobacco products as of January 1.
State expenditures on social allowances equalled Kc198.4bn, about Kc1bn more than a year ago.
Development of Czech state budget in Kc millions:
Source: Finance Ministry