Czechs Plan $7 Billion Budget Fix After Covid-Era Debt Spree (1)

The Czech government announced a sweeping overhaul of state finances as the ruling coalition seeks to deliver on its pledge to reverse a pandemic-era spending spree.

The five-party alliance approved a series of wide-ranging measures to cut spending and boost revenue that should curb the broader public finance deficit to 1.8% of economic output next year, from 3.5% expected this year.

“The main common goal of this government is to fundamentally reverse the trend of growing indebtedness of our state, of future generations,” Prime Minister Petr Fiala told reporters on Thursday. “The pace of debt increases is terrifying.”

His 19-month-old ...