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FISCAL RULES IN THE CZECH REPUBLIC

Ilona Bazantova, D. Charvatova

Abstract

At first, the article concentrates on the rules defined for fiscal policy and public finance in general and then deals with concrete cases. Fiscal policy is implemented by the government, respectively Ministry of Finance through public budgets, especially the state budget. Fiscal policy, however, is burdened by direct political influence compared to, for example, monetary policy. The article analyzes the situation in the Czech Republic and examines how the rules should be defined and embedded in legal documents in order to be as effective as possible. The Government sets its target in the form of a balance of public budgets as its share of GDP, three years ahead, on the basis of a rolling principle, ie every year the three-year horizon moves one year ahead. The research is carried out both from the national point of view and within the Czech Republic's commitments to the European Union. The article describes legal documents as an instrument for stabilization and correction of fiscal policy. Particular attention is paid to the Convergence Maastricht Criteria and the Stability and Growth Pact and the (Czech) Act No. 23/2017 Coll. on fiscal responsibility rules.

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DOI resolver: doi.org/10.5593/sgemsocial2018/1.2/S02.071

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