Czech Republic : Intergovernmental Fiscal Relations in the Transition

The study overviews the most relevant, current intergovernmental fiscal issues in the Czech Republic, centered on the options available to prod policy planning. Fragmentation at the lowest tier of government is the most striking feature of the administrative structure. This suggests a strategic direction for further administrative reforms to sustain fiscal decentralization, which includes empowering territorial self-governing units; establishing a multilevel government coordinating body to define autonomous functions on expenditures, and revenues; and by creating financial and legal incentives to facilitate an asymmetric assignment of revenue and expenditure. Specific policy actions should include institutional inter-governmental cooperation and dialogue through a broad based commission to recommend regional expenditures, and the Budget Rules Law should be amended to preempt unfounded mandates to local governments. Revenue autonomy should be boosted by increasing predictability of local budgets, restoring tax-effort incentives, and reviewing the adopted adjustment coefficient for tax-sharing distribution; while a rationalized transfer system should focus on decreasing the number of specific subsidies, and prioritizing programs to stabilize transfers within a medium-term expenditure framework. Institutional framework and prudential rules would ensure fiscally responsible borrowing, and encourage a competitive financial market.

Bibliographic Details

Main Authors:	do Carmo Oliveira, Joao, Martinez-Vasquez, Jorge
Language:	English en_US
Published:	Washington, DC: World Bank 2001-11
Subjects:	ACCOUNTABILITY, ADMINISTRATION REFORM, ADMINISTRATIVE CAPACITY, ADMINISTRATIVE REFORM, ADMINISTRATIVE REFORMS, ALLOCATION OF RESOURCES, AUTHORITY, BANK, BORROWING, BUDGET EXECUTION, CAPITAL EXPENDITURES, CENTRAL GOVERNMENT, CONSTITUENCIES, CONSTITUTION, CORPORATE INCOME TAX, COUNTRY'S AUTHORITIES, DEBT, DECENTRALIZATION, DECENTRALIZATION PROCESS, DECREE, DEGREE OF AUTONOMY, DISTRICTS, ECONOMIC REFORM, ELECTED REPRESENTATIVES, ENTERPRISE RESTRUCTURING, EXECUTION, EXPENDITURE, EXPENDITURE ASSIGNMENT, EXPENDITURE ASSIGNMENTS, EXPENDITURE RESPONSIBILITIES, FINANCIAL CAPACITIES, FISCAL, FISCAL BALANCE, FISCAL DECENTRALIZATION, FISCAL DEFICITS, FISCAL DISCIPLINE, FISCAL EQUALIZATION, FOREIGN INVESTMENT, FOREIGN TRADE, GOVERNMENT CONTROLS, GOVERNMENT DEBT, GOVERNMENT ENTITIES, GOVERNMENT EXPENDITURES, GOVERNMENT LEVELS, GOVERNMENT REVENUES, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, HEALTH SERVICES, HOUSING, INSOLVENCY, INSOLVENCY SYSTEMS, INTERGOVERNMENTAL FISCAL REFORM, INTERGOVERNMENTAL FISCAL RELATIONS, INVESTMENT GRANTS, LABOR MOBILITY, LAWS, LEGISLATURE, LEVELS OF GOVERNMENT, LICENSES, LOCAL AUTHORITIES, LOCAL AUTONOMY, LOCAL GOVERNMENT, LOCAL GOVERNMENT EXPENDITURES, LOCAL GOVERNMENT REVENUES, LOCAL GOVERNMENT SPENDING, LOCAL GOVERNMENTS, LOCAL REVENUE, LOCAL REVENUE SOURCES, LOCAL TAX, LOCAL TAXES, MARKET VALUE, MINISTRY OF FINANCE, MUNICIPAL BONDS, MUNICIPAL DEBT, MUNICIPAL GOVERNMENTS, MUNICIPALITIES, MUNICIPALITY, NATIONAL TAXES, PRIVATE SECTOR, PRIVATIZATION, PRIVATIZATION PROCEEDS, PROPERTY TAXES, PROVISIONS, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEW, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC FINANCE SYSTEM, PUBLIC FINANCES, PUBLIC OFFICIALS, PUBLIC POLICY, PUBLIC SECTOR, PUBLIC SECTOR EFFICIENCY, PUBLIC SERVICE, PUBLIC SERVICE DELIVERY, PUBLIC SERVICES, PUBLIC UTILITIES, REHABILITATION, RESOURCE ALLOCATION, REVENUE ASSIGNMENT, REVENUE SHARING, REVENUE SOURCES, SOCIAL ASSESSMENT, STATE ADMINISTRATION, STATE BUDGET, STATE FUNDS, STATE SUBSIDIES, STRUCTURE OF GOVERNMENT, SUBNATIONAL BUDGETING, SUBNATIONAL GOVERNMENT, SUBNATIONAL GOVERNMENTS, SURCHARGES, TAX BURDEN, TAX CAPACITY, TAX EFFORTS, TAX RATES, TAX REFORM, TAX REVENUE, TAX REVENUES, TAX SHARING, TAXATION, TRANSITION ECONOMIES, TRANSPARENCY, UNFUNDED MANDATES TRANSITION ECONOMIES, FISCAL ADJUSTMENTS, ADMINISTRATIVE CAPABILITY, REFORM POLICY, REGIONAL DISPARITY, LOCAL GOVERNMENT BUDGETS, PUBLIC SPENDING, FISCAL CONSTRAINTS, PUBLIC DEBT, POLICY PLANNING, COMPETITIVENESS, FINANCIAL MECHANISMS,
Online Access:	http://documents.worldbank.org/curated/en/2001/11/1643416/czech-republic-intergovernmental-fiscal-relations-transition https://hdl.handle.net/10986/14027
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