PRAGUE: The Czech Finance Ministry will offer up to 54 billion crowns ($2.53 billion) worth of domestic government bonds in 12 primary auctions in March, accelerating borrowing in the month to finance a pandemic-hit budget, the ministry said on Monday.

The expected amount on offer in March will rise from previous months although the ministry confirmed the maximum expected nominal value of bonds sold in auctions in the first quarter was still planned at 100 billion crowns.

The ministry added it would also offer up to 10 billion crowns worth of short-term Treasury bills through two auctions.

The Czech parliament approved last week raising the 2021 central state budget deficit to 500 billion crowns, from a previously planned 320 billion gap, to include a revenue gap caused by a record tax break and the impact of the coronavirus pandemic.

The increase was higher than expected by many analyst and market players and indicates growing borrowing in 2021.

The state had record borrowing in 2020 as the budget ballooned to 367.4 billion crowns, staying below a planned 500 billion crown gap, as spending grew and revenue was hit by coronavirus pandemic.