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Improving the Efficiency and Sustainability of Public Expenditure in the Czech Republic

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Author Info
Andrew Burns
Kwang-Yeol Yoo ()

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Abstract

This paper reviews the public expenditure system in the Czech Republic and the scope for its reform. In recent years much progress has been made in improving the transparency and management of government finances. Nevertheless, the budget and policy planning process retains a single-year and inputoriented focus. Moreover, with the recent introduction of a regional level of government and the expansion and proposed introduction of new extra-budgetary funds, the government’s capacity to manage the macroeconomy has been weakened. In this regard, establishing a multi-year budgetary process should be made a government-wide priority. Such a system would allow extra-budgetary funds to be re-integrated into the State Budget. Moreover, it would reduce the potential for expenditure creep and facilitate macroeconomic policy making, as would the establishment of mechanisms for co-ordinating sub-national spending programmes. Such a medium-term budgetary framework should evolve, over time, into a ...

Améliorer l'efficience et la viabilité des dépenses publiques en République tchèque

La présente note examine le système des dépenses publiques en République tchèque et la possibilité de le réformer. D'importants progrès ont été faits ces dernières années en vue d'améliorer la transparence et la gestion des finances publiques. Néanmoins, le processus de planification et d'établissement du budget s'inscrit toujours dans un cadre annuel et reste centré sur les ressources mises en oeuvre. De plus, avec la création récente d'un niveau régional d'administration et le développement des fonds extrabudgétaires ainsi que l'augmentation de leur nombre, les autorités sont moins à même de gérer la politique macro-économique. A cet égard, la mise en place d'une procédure budgétaire pluriannuelle devrait être une priorité à tous les niveaux d'administration. Un tel système permettrait de réintégrer les fonds extrabudgétaires dans le budget de l'Etat. Il réduirait en outre le risque de dérapage des dépenses et faciliterait la formulation de la politique macro-économique, au même ...

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Publisher Info
Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 328.

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Date of creation: 23 Apr 2002
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Handle: RePEc:oec:ecoaaa:328-en

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Keywords: transparence budgétaire dépenses publiques public expenditure general government extra-budgetary funds contingent liability fiscal discipline budgetary transparency multi-year budgeting administration publique fonds extra-budgétaires engagement conditionnel discipline budgétaire programmation budgétaire pluri-annuelle

Find related papers by JEL classification:
H0 - Public Economics - - General
H1 - Public Economics - - Structure and Scope of Government
H4 - Public Economics - - Publicly Provided Goods
H5 - Public Economics - - National Government Expenditures and Related Policies
H6 - Public Economics - - National Budget, Deficit, and Debt
H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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