The five-party, centre-right government is pushing through a package of subsidy cuts and tax increases aimed at cutting the deficit by around 151 billion crowns ($6.94 billion) over the next two years.
Efforts to revamp a creaking pension system that eats up a third of state expenditure are going alongside that package.
On Wednesday, the government won majority support in the lower house for changes to pensions despite fierce criticism from opposition lawmakers over several days.
The pension system changes, which still need to go to the Senate and president for approval, will reduce automatic pension payment rises and make early retirement tougher.
Government officials have said reforms were necessary given population ageing that by 2050, according to Labour Minister Marian Jurecka, will see one working person per retired person.
Faster pension rises amid higher inflation in recent years have burdened budgets which had already been strained first by the COVID pandemic that started in 2020 and then the Russia-Ukraine’s crisis in 2022 that forced state aid to help people cope with soaring energy prices.
In May, the government unveiled its pension reform alongside the planned package of tax hikes and reduced subsidies as it seeks to cut the public sector deficit to 1.8% of gross domestic product next year, from 3.5% expected this year.
The budget-cutting package made it through the first of three votes earlier this month and the government expects final approval in September.
