The Czech government will increase fiscal deficits planned for this year and next to cover part of the damage caused by recent widespread floods, according to Finance Minister Zbynek Stanjura.

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,

The Czech Republic plans to increase fiscal deficits this year and the next to address the damage caused by widespread floods, another blow to the government’s ambition to curb state debt. Most Read from BloombergAOC Proposes $30 Billion Social Housing AuthorityCalifornia’s Anti-Speeding Bill Can Be a Traffic Safety BreakthroughNew York City’s Transit System Plans $65.

Elections in the Czech Republic will take place as scheduled later this week despite the flood disaster unfolding in parts of the country, the government said on Tuesday. Representatives will be elected on Friday and Saturday to the assemblies of the country's 13 regions,

We see the overall flood damage at 0.5% of Czech nominal GDP, while the reported estimate of insured damage accounts for 0.2%. The cost may impact this year’s budget and medium-term inflation.