Czech Lower House Passes 2026 Budget with Defence Cuts

Lawmakers approved a 2026 budget with a 310 billion crown deficit and defence cuts. The plan faces criticism from NATO allies and the national budget watchdog.

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The lower house of the Czech Republic has approved a new national budget for 2026, setting a deficit of 310 billion crowns ($14.75 billion) amid a shift toward increased social spending and reduced defense outlays. The plan, championed by the government of Prime Minister Andrej Babis and his populist ANO party, replaces a provisional budget that had been in place following legislative delays after last year's elections. The administration has prioritized investments, public sector wages, and energy subsidies, aiming to stimulate economic growth after a period of fiscal consolidation.

Czech Prime Minister Andrej Babis is seen during a press conference in Bratislava, Slovakia, on January 8, 2026. Photo credit: REUTERS/Radovan Stoklasa/File Photo
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