Czech Republic: Intergovernmental Fiscal Relations in the Transition

Overview

This report contains the most significant elements of intergovernmental fiscal relations in the Czech Republic including administrative structure, expenditure and revenue assignments, fiscal imbalances and transfers, access to borrowing and indebtedness, and budgeting. Although each of these elements is discussed in its own chapter, it is important to remember that they are interrelated and that reform design needs to be conducted in a coordinated manner.

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Overview

This report contains the most significant elements of intergovernmental fiscal relations in the Czech Republic including administrative structure, expenditure and revenue assignments, fiscal imbalances and transfers, access to borrowing and indebtedness, and budgeting. Although each of these elements is discussed in its own chapter, it is important to remember that they are interrelated and that reform design needs to be conducted in a coordinated manner.

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Product Details

  • ISBN-13: 9780821350430
  • Publisher: World Bank Publications
  • Publication date: 12/1/2001
  • Series: World Bank Technical Papers , #517
  • Pages: 116
  • Product dimensions: 8.30 (w) x 10.70 (h) x 0.40 (d)

Table of Contents

Foreword
Preface
Acknowledgments
Acronyms and Abbreviations
Executive Summary
1 Administrative Structure 1
Profile of the Current Territorial Administrative Structure 1
Decisionmaking Power at the Local Level 4
The Establishment of Regions and the Interim Period 4
Challenges Ahead and Reform Issues 6
2 Expenditure Responsibilities 9
Current Expenditure Assignments 9
The Role of the New Regions 10
Expenditure Patterns 13
Regional Disparities in Local Government Spending 16
Issues on Expenditure Assignments 17
Options for Reform in Expenditure Assignments 22
3 Revenue Assignments 25
Local Revenue Sources 25
Patterns of Local Government Revenues 30
The 2000 Reform in Revenue Assignment 31
The Unfinished Reform Agenda 35
4 Fiscal Imbalances and the System of Transfers 39
The Current System of Transfers 39
Vertical and Horizontal Imbalances 42
Main Issues Concerning the System of Transfers 45
Options for Reform 50
5 Access to Borrowing by Subnational Governments 53
Public Sector Debt 53
Local Fiscal Imbalances and Debt Accumulation 54
Expansion and Composition of Municipal Debt 55
Access to Borrowing by Municipalities 57
Local Government Indebtedness 58
Management of Local Government Debt 59
Options for Reform 62
6 Subnational Government Budgeting 65
Autonomy, Discretion, and Accountability 65
Budget Preparation, Predictability, and Transparency 66
Local Budget Execution, Monitoring, and Reporting 68
Control and Performance Evaluation 69
Options for Reform 69
Matrix of Main Issues and Options/Recommendations 71
Statistical Appendix 77
Notes 83
References 91
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