Prague City Council approves 2019 budget

More money will go to education and the pre-school allowance increases

The new Prague City Council approved a municipal budget for 2019. The approval was accelerated so that city districts could soon adopt their budgets and normal city functions would not be disturbed.

The budget sets aside Kč 13.5 billion for investing into projects, which the City Council will decide on in the first quarter of next year. This will create time for the new City Council to prepare the projects.

“We want to ensure security for the city's districts and allow the city to function smoothly on a daily basis. At the same time we are intensively working to prepare projects for investments. We are doing so in line with what we said before the elections,” Pavel Vyhnánek (Praha Sobě), deputy mayor for finance and budget, said on the City Hall website.

The budget sets revenue at Kč 59.2 billion and spending Kč 77.6 billion crowns. This gives the 2019 budget an apparent deficit of Kč 18.4 billion, but that is only a technical figure, according to City Hall. The difference between revenues and expenditures is fully covered by the city’s economic results from previous years, and the budget does not include future revenues from the state budget.

Current annual expenses amount to Kč 59.3 billion, while the year-on-year increase is Kč 5.8 billion. Capital expenditures are Kč 18.2 billion and their year-on-year increase is Kč 1.5 billion.

The budget for 2019 increases the pre-school allowance from Kč 2,000 to Kč 2,700. It also adds money for teachers and workers in education, with a total of Kč 700 million, of which Kč 100 million is for new to staff in school cafeteria.

It is projected that as of Dec. 31, 2019, the long-term financial liabilities of the City of Prague will amount to Kč 19.1 billion and the provisions for debt service will total Kč 6.9 billion. The current rating by Moody’s is A1 / Positive, Standard & Poor’s AA- / Stable / A-1 +. In both cases, these very good ratings that are consistent with the level of the Czech Republic, according to City Hall.

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