H62 - National Deficit; SurplusNávrat zpět

The reduction of public debt has become important task for many national governments. Sustainability of public finance is frequently conditioned by cutting budget deficits, i.e. raising tax burden and/or reducing government expenditure. Countries have to implement large fiscal consolidation to avoid fiscal crises and encourage future growth. However, the fiscal tightening can suppress the growth of actual product and delay the improvement of fiscal indicators. The goal of this article is to present the possible effects of fiscal consolidation on national economy. On the basis of literature review we will try to summarize current discussion and highlight the main problems of design and implementation fiscal consolidation. The successful reform of public finance should be expenditure based and changes of government spending and taxes should be permanent. The economic boom is probably better period for fiscal consolidation then recession. And timing of received fiscal measures seems to be also important. The responses of central bank and possibility of currency depreciation can also play crucial roles. Finally, the successful fiscal consolidation can depend on institutional arrangement of economy or structural policy and income policy.

Municipal indebtedness has become a much debated issue in recent years. This paper analyzes debt development and structure for all the municipalities in the Czech Republic for the years 2001-2014 and examines the indebtedness of a selected sample of municipalities. The paper also evaluates the tools currently available to regulate municipal indebtedness. The methods and procedures used by the authors mainly involve research in professional literature and the analysis of available data on municipal indebtedness. The analysis was concerned primarily with municipalities that have been assessed in recent years as municipalities with a higher rate of economic risk by the Municipal Financial Management Monitoring system performed by the Ministry of Finance of the Czech Republic. The completed analysis suggests that municipal indebtedness is not high when compared to the public debt of the Czech Republic. Only a few municipalities are dealing with indebtedness (or over-indebtedness). Large cities are capable of fulfilling their financial obligations.