Czech Republic : Enhancing the Prospects for Growth with Fiscal Stability

The Czech government is confronted with a worsening fiscal situation. The structural deficit ballooned in 2000, and it is expected to widen further in 2001. The report suggests that, at this stage of the recovery, fiscal retrenchment instead should...

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Bibliographic Details
Main Author:	World Bank
Format:	Publication
Language:	English en_US
Published:	Washington, DC: World Bank 2013
Subjects:	ASSETS AUTHORITY BANK BAILOUTS BANK RESTRUCTURING BANKING SECTOR BORROWING BUDGET PROCESS BUDGET SYSTEMS BUDGETARY FUNDS BUREAUCRATIC SYSTEM CENTRAL GOVERNMENT CENTRAL GOVERNMENTS CONSOLIDATION CONSUMER SATISFACTION COST BENEFIT ANALYSIS CPI DEBT SERVICE DECENTRALIZATION DEFICITS DEVOLUTION DISTRICTS ECONOMIC RECOVERY EIB EMPLOYMENT ENTITLEMENTS EXCESS DEMAND EXPENDITURE EXPENDITURE REFORM EXPENDITURE RESPONSIBILITIES EXTRABUDGETARY FUNDS EXTRAORDINARY ITEMS FINANCIAL CRISIS FINANCIAL DIFFICULTIES FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SUSTAINABILITY FINANCING SOURCES FISCAL FISCAL DECENTRALIZATION FISCAL DEFICIT FISCAL MANAGEMENT FISCAL POLICY FISCAL PRESSURES FISCAL REVENUE FISCAL SITUATION FISCAL STANCE FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FORESTRY GNP GOVERNMENT EXPENDITURES GOVERNMENT HOUSING GOVERNMENT INTERVENTION GOVERNMENT OFFICIALS GOVERNMENT REVENUES GRANT PROGRAMS GROSS DOMESTIC PRODUCT GROSS NATIONAL PRODUCT HOUSING DEMAND HOUSING POLICY HOUSING SUBSIDIES INCOME INCOME LEVELS INDEXATION INDIVIDUAL ACCOUNTS INSTITUTIONAL REFORMS INTEREST RATES INTERGOVERNMENTAL FISCAL RELATIONS LABOR FORCE LEGAL FRAMEWORK LEGISLATION LICENSES LOCAL AUTHORITIES LOCAL GOVERNMENT LOCAL GOVERNMENTS MANDATED EXPENDITURES MINISTRY OF FINANCE MUNICIPAL CREDIT MUNICIPAL DEBT MUNICIPAL GOVERNMENT MUNICIPALITIES NATIONAL LEVEL OPERATING LOSSES PENSIONS POLICY INSTRUMENTS POLITICAL CONSENSUS PRIVATE COMMERCIAL BANKS PRIVATE HOUSING PRIVATE SECTOR PRIVATE SECTOR FINANCING PRIVATIZATION PRODUCERS PROVISIONING PROVISIONS PUBLIC DEBT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REVIEW PUBLIC EXPENDITURES PUBLIC FINANCES PUBLIC HOUSING PUBLIC POLICY PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICES PUBLIC SPENDING PUBLIC TRANSPORT REPRESENTATIVES RESOURCE USE RETIREMENT REVENUE REFORM REVENUE SOURCES ROADS SAVINGS SOCIAL INSURANCE SOCIAL PROTECTION STATE AGENCIES STATE BUDGET STATE FUNDS TAX TAX BURDEN TAX REVENUES TAX SUBSIDIES TOTAL EXPENDITURES TRADE UNIONS TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATE URBAN CONGESTION USER CHARGES UTILITIES
Online Access:	http://documents.worldbank.org/curated/en/2001/09/1614743/czech-republic-enhancing-prospects-growth-fiscal-stability http://hdl.handle.net/10986/13864

Description
Summary:	The Czech government is confronted with a worsening fiscal situation. The structural deficit ballooned in 2000, and it is expected to widen further in 2001. The report suggests that, at this stage of the recovery, fiscal retrenchment instead should be in order, both to make room for private demand to expand, without putting undue pressure on interest rates, and/or on the external current account, and, to set the country on track towards adhering to Stability and Growth Path when in the European Union (EU). The report sees a stronger case, and greater scope for adjustment on the expenditure, than on the revenue side. Expenditures have shot up in the last three years, to a level which exceeds those observed in comparable countries. Worse, most existing expenditure programs, seem locked in upward trajectories, and fresh spending pressures (arising from EU accession, contingent liabilities, or decentralization) are building up. The report illustrates, for selected sectors (bank restructuring, social protection, health, education, transport, and housing), the challenges involved in correcting expenditure trajectories. A key message is that, to succeed, the process of expenditure reform will need to be firmly grounded in the development of analytic capacities, in both core and line agencies, linked with enhancements in the country's institutions, and procedures for fiscal management.

Czech Republic : Enhancing the Prospects for Growth with Fiscal Stability

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