The Czech Republic’s total foreign debt rose by 47.4 billion crowns to
nearly 4.5 trillion crowns in the second quarter of this year, accounting
for 91.9 percent of gross domestic product, according to preliminary data
released by the Czech National Bank on Wednesday. Year-on-year, the foreign
debt was nearly 1.1 trillion crowns higher.
The Czech Republic’s foreign debt has been gradually increasing for some time. It exceeded the four trillion crown mark for the first time this year. It crossed the two trillion mark in 2010, six years after reaching 1 trillion crowns for the first time.
Teens in the Czech Republic get, on average, almost 700 crowns from their parents per month, according to a study focusing on financial literacy conducted by ČSOB bank. According to the survey, for around 12 percent, those funds are not enough. Financial literacy has been a compulsory subject in the classroom for four years.
The current account of the Czech Republic’s balance of payments, a broad measure of goods and money flowing in and out of the country, showed a surplus of around 7.6 billion crowns in the first quarter of 2017, the Czech National Bank announced on Wednesday. The surplus for the first six months of the year totals 90 billion crowns.
The Ministry of Finance is set to launch a receipt lottery in October, the daily Hospodářské noviny reported on Tuesday. The lottery, which aims to encourage consumer assistance in fighting tax evasion, was originally to be launched in mid-September, but preparations took longer than expected. The lottery is set to distribute up to 65 million crowns a year in winnings.
Finance Minister Ivan Pilný from the ANO party has increased the revenues
chapter in the 2018 draft budget by 21 billion crowns.
The minister confirmed this in a debate on Czech Television on Sunday, saying the ministry had upgraded its growth estimate for 2018 from 2.9 to 3.1 percent.
However the additional finances would still not cover the proposed wage hike for public sector employees. According to Pilny the budget would still be short of approximately 8 billion crowns.
The finance minister dismissed the prime minister’s proposal that this money could come from finances saved by individual ministries as unrealistic, saying ministry officials had made it clear they would spend their entire budgets.
The coalition parties are to meet on Monday to debate the proposed wage hikes.
Finance Minister Ivan Pilný from the ANO party maintains that there is no
money left in next year’s draft budget for wage hikes for public sector
The minister says that the proposed 15 percent wage hike for teachers and 10 percent increase for other public sector employees would require an additional 33 billion crowns and would increase next year’s budget deficit to close to 100 billion crowns.
The minister also dismissed the prime minister’s proposal that the money could come from the finances saved by individual ministries, saying the idea is unrealistic and the money is simply not there.
The coalition parties are to meet on Monday to debate the issue.
Labour market experts are expecting a further drop in unemployment, with
the figure likely to dip under 4 percent in September, the ctk news agency
The unemployment rate was 4.1 percent in July, and 4.0 in August. The lack of workers on the market is also expected to push up salaries.
The expectations are that unemployment will reach 3.7 percent in November before seeing a slight growth due to the end of seasonal work.
Around one third of Czechs have overdrawn their bank accounts over the past
year, according to a survey carried out by CSOB bank. Roughly a half of
households had problems with unexpected expenditures that exceeded 10,000
crowns, the survey suggests.
According to CSOB’s Petr Hutla, most families’ financial reserves would only last for three months in case they lost their main source of income. One quarter of Czech households would survive for less than a month on their savings.