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‘We live better than we are willing to pay for in taxes,’ economist warns Image: MAFRA
🇨🇿 Czech Republic /Economy & Trade

‘We live better than we are willing to pay for in taxes,’ economist warns

From iDNES · () Czech

Translated from Czech and summarized by DistantNews. Read the original for the full story.

At a glance

Interview Named sources New plan
  • Czech Finance Minister Alena Schillerová presented a draft state budget for next year with a deficit of 389 billion Czech crowns.
  • Economists say net investment accounts for only a small share of the budget, while the country has grown accustomed to underinvesting and shifting operating costs to future generations.
  • Economist Michal Skořepa warned that maintaining this pattern for too long could put the state on course for bankruptcy.

“We live better than we are willing to pay for in taxes,” economist Michal Skořepa warns as the Czech government considers next year's state budget.

Finance Minister Alena Schillerová has submitted a proposal with a deficit of 389 billion Czech crowns. Skořepa says the size of the deficit is not the only concern. Net investment makes up only a very small part of the budget, he says.

We live better than we are willing to pay for in taxes.

— Michal SkořepaThe economist's warning about the gap between public spending and taxpayers' willingness to fund it.

The economist, who works for Česká spořitelna and chairs the Committee for Budgetary Forecasts, argues that the Czech Republic has become used to investing too little and passing operating costs on to future generations.

“If we maintain this habit for long enough, the state could head toward bankruptcy,” Skořepa says in an interview with iDNES.cz. His warning focuses on the longer-term consequences of a budget structure that leaves little room for investment while continuing to finance current costs.

The Czech Republic has become used to investing too little and passing operating costs on to future generations. If we maintain this habit for long enough, the state could head toward bankruptcy.

— Michal SkořepaSkořepa's assessment of the country's low investment and the long-term risks of shifting costs to future generations.
About this summary

Originally published by iDNES in Czech. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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