PRAGUE: The Czech Republic will post a bigger fiscal surplus this year and every year until 2020 than previously expected, helping reduce government debt toward 30 percent of gross domestic product, the Finance Ministry said on Monday.
The EU member has enjoyed strong economic growth in the past three years, touching 5 percent in the third quarter, which has filled state coffers.
Record low interest rates, measures to cut tax avoidance, better treasury management and slower investments have also helped the budget, expected to end up in a surplus for the second year in a row in 2017.
The central budget and other public sector segments - mainly local budgets, national health insurance and others - will send the public sector to the EU's highest surplus this year of 1.1 percent of GDP, the ministry said in a quarterly update of its forecasts.
Surpluses will grow to 1.7 percent in 2020, it said.
The surpluses are markedly higher than those forecast in the previous outlook in July, which saw 0.7 percent this year and 0.5 percent for 2020.
Public sector debt will keep falling to 30.9 percent of GDP in 2020, the ministry said, from an improved outlook of 34.7 percent this year and the peak of 44.9 percent in 2013.
The 2017 debt forecast puts the country fourth in the EU among those with the lowest debt, behind Estonia, Luxemburg and Bulgaria. The European Commission's latest forecast puts the EU average public debt at 83.5 of GDP percent this year.
The ministry also raised its 2017 growth forecast to 4.1 percent from previous 3.1 percent, and the 2018 outlook to 3.3 percent form 2.9 percent.
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