ZMĚNY VE STRUKTUŘE VÝDAJŮ ČESKÝCH MUNICIPALIT
THE CHANGES IN MUNICIPALITIES' EXPENDITURE STRUCTURE: THE CASE OF CZECHIA

Author(s): Pavel Zdražil
Subject(s): Public Administration, Economic policy, Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: municipal budgets; structure of expenditure; Czechia; fiscal federalism;
Summary/Abstract: The aim of this contribution is to assess the development of the municipalities’ expenditures structure in Czechia with respect to different size groups, to identify their expenditure priorities, and to assess the sustainability of the decentralization model applied in terms of the development potential of smaller municipalities. Based on the current and capital expenditures, broken down into groups of sectoral classification of budget structure over the period of 2003-2017, the development of the Czech municipalities’ expenditures structure is analyzed. The analysis shows an undesirable trend of preferring the consumption to the detriment of investments. Moreover, significantly different patterns were identified in changes of the expenditure structure between small and large municipalities. Particularly in small municipalities, one can consider the threat of development potential, which is challenged by the effort of maintaining the living standards or its immediate increase. It can also be assumed that part of the prospective economic benefits will be transferred to the larger municipalities which actively prefer investments to the support of economics. Based on the results, the sustainability of the current decentralization model appears to be highly problematic from the point of view of small and smallest municipalities, and it is appropriate to consider its reforming.

• Details
• Contents