PRAGUE, Jan 4 (Reuters) - The Czech Republic's budget deficit narrowed to 288.5 billion crowns ($12.81 billion) in 2023, the Finance Ministry said on Thursday, below the target set in the government's budget.
The country has seen its budget strained in recent years while debt rose sharply, and the centre-right government has aimed to bring the overall fiscal deficit back within European Union rules this year.
The deficit in 2023 was below a targeted gap of 295 billion crowns and smaller than a 360.4 billion crown deficit in 2022.
Spending has risen, driven by higher pension payments and aid to help people and companies affected by an energy price surge in the wake of Russia's invasion of Ukraine. State debt costs are also higher.
In 2023, budget expenditure rose 11.0% year-on-year while income was up 17.8%, the ministry said.
The central budget is the main part of the country's overall public sector finances.
The government has pushed through a package of tax hikes for corporations, high earners and real estate together with subsidy cuts to reduce the overall fiscal deficit below EU limits of 3% of gross domestic product in 2024.
($1 = 22.5160 Czech crowns) (Reporting by Jan Lopatka and Jason Hovet; Editing by Susan Fenton)
