Deficit of government institutions amounted to 0.74% of GDP in Q1, down by almost 1.1pp y/y, the Czech stats office informed referring to ESA2010 data. The annual decline came with the strong revenue growth especially of tax and social contributions income. On the spending side, the highest increase was related to the growth in pension spending, salary bill and intermediate consumption, while investment spending declined mildly.
The general government dent amounted to 40.43% of GDP, down by 1.5pps y/y namely as nominal GDP growth exceeded the growth in nominal government debt. Still debt has increased by 0.12pps q/q.