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Improving Public-spending Efficiency in Czech Regions and Municipalities

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  • Philip Hemmings

Abstract

This paper looks at ways of ensuring Czech regions and municipalities are fully motivated to make efficiency improvements in public service provision and so help achieve countrywide fiscal sustainability. The very large number of small municipalities in the Czech Republic means that scale economies are difficult to exploit and the policy options for overcoming this problem are discussed. In the financing system there are issues of transparency and the balance between autonomy for the regions and municipalities and central-government power to direct resources. In terms of accountability, questions of oversight and transparency arise in the public-procurement system and benchmarking in cost and output in public services is not yet widely used. This Working Paper relates to the 2006 OECD Economic Survey of the Czech Republic (www.oecd.org/eco/surveys/Czech). L'amélioration de l'efficience des dépenses publiques dans les régions et les communes en République tchèque Ce document porte sur les moyens de veiller à ce que les régions et communes tchèques soient pleinement encouragées à réaliser des gains d’efficience dans la prestation des services publics, et à contribuer ainsi à garantir la viabilité budgétaire de l’ensemble du pays. Le très grand nombre de petites communes que compte la République tchèque signifie que les possibilités d’économies d’échelle sont difficiles à exploiter, et les options envisageables pour résoudre ce problème sont examinées. Par ailleurs, le système de financement soulève des questions de transparence et d’équilibre entre l’autonomie des régions et des communes, d’une part, et les prérogatives de l’administration centrale en matière de répartition des ressources, d’autre part. En termes d’obligations redditionnelles, des questions de contrôle et de transparence se posent dans le domaine des marchés publics, et l’analyse comparative des coûts et des résultats reste peu utilisée dans les services publics. Ce Document de travail se rapporte à l'Étude économique de l'OCDE de la République tchèque 2006 (www.oecd.org/eco/etudes/tcheque).

Suggested Citation

  • Philip Hemmings, 2006. "Improving Public-spending Efficiency in Czech Regions and Municipalities," OECD Economics Department Working Papers 499, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:499-en
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    File URL: http://dx.doi.org/10.1787/884741503537
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    Cited by:

    1. Lucie Sedmihradská & Rudolf Kubík & Jakub Haas, 2011. "Political Business Cycle in Czech Municipalities," Prague Economic Papers, University of Economics, Prague, vol. 2011(1), pages 59-70.
    2. Zuzana Kučerová, 2012. "Measuring of Efficiency in the Public and Private Sector - Current Research Approaches," Český finanční a účetní časopis, University of Economics, Prague, vol. 2012(2), pages 110-125.

    More about this item

    Keywords

    communes; Czech Republic; dépenses publiques; municipalities; public expenditure; regions; régions; République tchèque;

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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