Publication detail

Global COVID-19 Pandemic and Indebtedness of Municipalities with Extended Power in the Czech Republic

Lajtkepová

Original Title

Global COVID-19 Pandemic and Indebtedness of Municipalities with Extended Power in the Czech Republic

Type

article in a collection out of WoS and Scopus

Language

English

Original Abstract

Research background: In theory, indebtedness of municipalities is only ever associated with the acquisition of investments. It is advised that indebtedness should be regulated by the state, but there is a risk of limiting investment in local infrastructure. Purpose of the article: According to Act No. 23/2017 Coll., municipalities must regulate their own indebtedness and comply with the fiscal rule on pain of penalty. The aim of this text is to provide an analysis and examine the prospects of compliance with the fiscal rule in 205 municipalities with extended power. The analysis is carried out between 2017 and 2019, the risks of compliance in the following years mainly relate to the emerging economic crisis caused by the COVID-19 pandemic. Methods: Given the subject of the analysis, secondary data was used for the research. Data was taken from the Monitor database operated by the Ministry of Finance of the Czech Republic. The obtained data had been processed using standard statistical methods. Findings & Value added: To date, the indebtedness of municipalities with extended power is not excessive: the mean and median values are still well below the legal limit. Still, there are some municipalities where the legal limit has been exceeded, or whose indebtedness is nearing the limit. In the event of reduced tax revenue, which is to be expected in the coming years, these municipalities will struggle to comply with the fiscal rule. The consequences will include halting or limiting local investment, and/or reducing the quality of local public goods.

Keywords

budget; budget responsibility; fiscal rule; municipality with extended power; public goods

Authors

Lajtkepová

Released

13. 1. 2021

Publisher

EDP Sciences

Location

Žilina, Slovenská republika

ISBN

2261-2424

Book

Globalization and its Socio-Economic Consequences

Edition

Global Impact of COVID 19 on Economy and Society

Edition number

92

ISBN

2261-2424

Periodical

SHS Web of Conferences

Year of study

92

Number

1

State

French Republic

Pages from

1023

Pages to

1033

Pages count

10

URL

https://www.shs-conferences.org/articles/shsconf/abs/2021/03/shsconf_glob20_01023/shsconf_glob20_01023.html

Full text in the Digital Library

http://hdl.handle.net/11012/195935

BibTex

@inproceedings{BUT166355,
  author="Eva {Lajtkepová}",
  title="Global COVID-19 Pandemic and Indebtedness of Municipalities with Extended Power in the Czech Republic",
  booktitle="Globalization and its Socio-Economic Consequences",
  year="2021",
  series="Global Impact of COVID 19 on Economy and Society",
  journal="SHS Web of Conferences",
  volume="92",
  number="1",
  pages="1023--1033",
  publisher="EDP Sciences",
  address="Žilina, Slovenská republika",
  doi="10.1051/shsconf/20219201023",
  isbn="2261-2424",
  issn="2261-2424",
  url="https://www.shs-conferences.org/articles/shsconf/abs/2021/03/shsconf_glob20_01023/shsconf_glob20_01023.html"
}