Czech Republic : Intergovernmental Fiscal Relations in the Transition

The study presents an overview of the most relevant, current intergovernmental fiscal issues in the Czech Republic, centered on the options available to prod policy planning. The fragmentation at the lowest tier of government is the most striking feature of the administrative structure, thus suggesting a strategic direction for further administrative reforms to sustain fiscal decentralization, by empowering territorial self-governing units, through meaningful autonomy, through the establishment of a multilevel government coordinating body, for the definition of 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 to clarify responsibilities of the strategic direction for expenditure assignments 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, through structural policy parameters, 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, prioritizing programs to stabilize transfers within a medium-term expenditure framework, including the evaluation of a separate Fiscal Equalization Fund to reduce regional fiscal disparities. Institutional framework, and prudential rules would ensure fiscally responsible borrowing, and encourage a competitive financial market.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2001-05
Subjects:	ACCOUNTABILITY, ACCOUNTING, ADMINISTRATION REFORM, ADMINISTRATIVE CAPACITY, ADMINISTRATIVE REFORM, ADMINISTRATIVE REFORMS, ALLOCATION OF RESOURCES, AUTHORITY, BALANCED BUDGETS, BANKING SYSTEM, BANKRUPTCY, BANKS, BORROWING, BUDGET EXECUTION, BUDGET FORMULATION, BUDGET PROCESS, BUREAUCRACY, CAPITAL EXPENDITURES, CAPITAL MARKETS, CENTRAL GOVERNMENT, CONSTITUENCIES, CONSTITUTION, CORPORATE INCOME TAX, COUNTRY'S AUTHORITIES, CREDIT MARKETS, CREDITWORTHINESS, DEBT SERVICE, DECENTRALIZATION, DECENTRALIZATION OBJECTIVES, DECENTRALIZATION PROCESS, DECENTRALIZATION REFORM, DECISION- MAKING, DECISION- MAKING PROCESS, DECISION-MAKING, DECISION-MAKING POWER, DECREE, DEGREE OF AUTONOMY, DISTRICTS, ELECTED REPRESENTATIVES, ENTERPRISE RESTRUCTURING, EXECUTION, EXPENDITURE, EXPENDITURE ASSIGNMENTS, EXPENDITURE RESPONSIBILITIES, FINANCIAL CAPACITIES, FINANCIAL CRISES, FINANCIAL SECTOR, FINANCIAL SYSTEM, FISCAL, FISCAL BALANCE, FISCAL DECENTRALIZATION, FISCAL DEFICITS, FISCAL DISCIPLINE, FISCAL EQUALIZATION, FISCAL REFORM, FISCAL YEAR, GOVERNMENT CONTROLS, GOVERNMENT DEBT, GOVERNMENT ENTITIES, GOVERNMENT EXPENDITURES, GOVERNMENT LEVEL, GOVERNMENT REVENUE, GOVERNMENT REVENUES, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, HEALTH SERVICES, HOUSING, INSTITUTIONAL DEVELOPMENT, INSTITUTIONAL FRAMEWORK, INTERGOVERNMENTAL FISCAL RELATIONS, INTERGOVERNMENTAL SYSTEM, INTERNATIONAL FINANCIAL MARKETS, LABOR MOBILITY, LAWS, LEVELS OF GOVERNMENT, LOCAL AUTHORITIES, LOCAL AUTONOMY, LOCAL GOVERNMENT, LOCAL GOVERNMENT EXPENDITURES, LOCAL GOVERNMENT REVENUE, LOCAL GOVERNMENT REVENUES, LOCAL GOVERNMENT SPENDING, LOCAL GOVERNMENTS, LOCAL REVENUE, LOCAL REVENUE SOURCES, LOCAL TAX, LOCAL TAXES, MARKET DISCIPLINE, MARKET VALUE, MINISTRY OF FINANCE, MUNICIPAL BONDS, MUNICIPAL DEBT, MUNICIPAL GOVERNMENTS, MUNICIPALITIES, NATIONAL TAXES, PRIVATE SECTOR, PRIVATIZATION, PRIVATIZATION PROCEEDS, PROPERTY TAXES, PROVISIONS, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEW, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC FINANCE SYSTEM, PUBLIC FINANCES, PUBLIC OFFICIALS, PUBLIC SECTOR, PUBLIC SECTOR EFFICIENCY, PUBLIC SERVICE, PUBLIC SERVICE DELIVERY, PUBLIC SERVICES, PUBLIC UTILITIES, REHABILITATION, RESOURCE ALLOCATION, REVENUE ASSIGNMENT, REVENUE SHARING, REVENUE SOURCES, STATE ADMINISTRATION, STATE BUDGET, STATE FUNDS, STATE SUBSIDIES, SUBNATIONAL GOVERNMENT, SUBNATIONAL GOVERNMENTS, SURCHARGES, TAX ADMINISTRATION, TAX ASSIGNMENT, TAX BURDEN, TAX CAPACITY, TAX EFFORTS, TAX RATES, TAX REFORM, TAX REVENUE, TAX REVENUES, TAX SHARING, TOTAL EXPENDITURES, TRANSPARENCY, TRANSPORT, TREASURY, UNFUNDED MANDATES TRANSITION ECONOMIES, FISCAL ADJUSTMENTS, ADMINISTRATIVE CAPABILITY, REFORM POLICY, REGIONAL DISPARITY, LOCAL GOVERNMENT BUDGETS, PUBLIC SPENDING, FISCAL CONSTRAINTS, POLICY PLANNING, COMPETITIVENESS, FINANCIAL MECHANISMS,
Online Access:	http://documents.worldbank.org/curated/en/2001/05/1570692/czech-republic-intergovernmental-fiscal-relations-transition https://hdl.handle.net/10986/15487
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