Czechs to provide $1.3 billion for flood damage in 2024 budget amendment

Czechs to provide $1.3 billion for flood damage in 2024 budget amendment

The Czech finance ministry will provide 30 billion crowns ($1.34 billion) to tackle flood damage under an amendment of its 2024 budget and will allocate a further 10 billion crowns next year for the same purpose, news agency CTK reported on Thursday.

The worst floods to hit central Europe in at least two decades have left a trail of destruction across central Europe, killing at least 24 people.

In the Czech Republic, where the death toll now stands at five people, water levels are receding.

The Czech government had planned a 252 billion crown central budget deficit this year, but that will now rise to 282 billion crowns due to the costs of tackling the floods, CTK cited Finance Minister Zbynek Stanjura as saying.

Before the expected change, the ministry had forecast an overall fiscal gap, which takes regional governments and other funds into account, of 2.5% of gross domestic product (GDP) in 2024, below European Union limits.

The additional funds are equal to about 0.38% of GDP.

Another 10 billion crowns will be allocated in the 2025 budget, CTK said, and the planned deficit will rise to 240 billion crowns, from 230 billion.

"Now we are all straining to repair the damage caused by the devastating floods," Prime Minister Petr Fiala said on X on Thursday.

"Immediately afterwards, massive investment will be needed to rebuild the affected area, and the government will make CZK 40 billion available for this (over two years)."