The perverse business of subsidies is ruining the Czech Republic. And Babis can no longer be blamed

Where the government wastes money in the budget is subsidies. Finance Minister Zbyněk Stanjura (ODS) has promised to cut all subsidies going directly to companies once the government takes office before the 2021 elections. At that time, there were 106 billion crowns per year. 76 billion crowns left this year.

The Supreme Audit Office has sharply identified subsidies as one of the biggest black holes in the budget in its assessment of the state’s economy for 2022. This is the Petr Fiala government business card. This no longer applies to the reign of the grant king Andrej Babis.

“One of the areas where significant savings can be made is the subsidy system. SAO’s audits showed that the real meaning of subsidies has been changed by the formal system. The extraction of money is better than the potential benefits of subsidies. The system of hundreds of subsidy degrees, within which hundreds of billions of crowns are distributed, is unmanageable and administratively demanding.” The formal, formal side of the matter wins the real meaning and especially the benefit of subsidies, which is a luxury that our country cannot afford at the time of the huge structural deficit in the state budget,” points out the President of SAO, Miloslav Kala.

An out-of-control, mindless juggernaut where hundreds of billions of crowns disappear. Also, the government should pay the officials who implement the complete idiotic system. And companies have to waste time writing applications for grants that lead to nothing. It effectively redistributes state money to various interest groups. And when it comes to farmers, analysts point directly to their record profits and weak competition from many large agricultural complexes linking agriculture to food production. And the government has not been able to cut off large agricultural complexes from subsidies.

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“Another example where reality contradicts the given priorities is the support of micro-enterprises and small and medium-sized enterprises in the processing of agricultural products. According to the strategy of the Ministry of Agriculture, national and European subsidies should be primarily aimed at them. However, the resort has not prepared any national subsidy program for them. Instead, he plans to support large companies. declared, from which he paid 1.7 billion crowns,” the Supreme Audit Office writes in its assessment report.

Again, it’s worth remembering that this is an annual report for 2022. The cabinet of Andrzej Babis, the largest Czech donor, appears to have been in power at the time. But this was the result when Zdeněk Nekula, the right-hand man of People’s Party leader Marian Jureka, took office after a year of Peter Fiala’s cabinet.

But agriculture is not the exception but confirms the rule. Another large set of subsidies goes to the fight for an ecological and emission-free economy.

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