FP-UvfPAcad. year: 2019/2020
The course focuses on the following topics: Public choice as a starting point in understanding public finance, basic categories of public finance, public revenues and public expenditure, fundamentals of taxation theory including excessive tax burden, fiscal federalism, the budgetary system in the Czech Republic, the budget deficit and public debt. Fundamentals of financing in selected areas within the public sector. The ethical aspects of public finance.
Learning outcomes of the course unit
Knowledge: The student can enumerate and describe the basic relations in public finances, can analyse, describe and explain the links between public finances and elections. The student can explain the terms public good, the public sector, public revenue and expenditure, budgetary system, public budget and tax revenue. They can define the main aspects of decision-making in the public sector. They can analyse the impact of a budget deficit and public debt on the economic development of the country both in the short and long term.
Skills: The student can find, sort and correctly interpret socioeconomic data concerning the public sector, is able to consider the impact of expected fiscal developments at the levels of the central and decentralised budgets. They are able to foresee the consequences of fiscal development for the enterprise.
General abilities: The student has the ability to orient themselves in current politico-economic reality, continuously monitors and evaluates the economic, political and social situation in the Czech Republic and in the international context. They are able to analyse the normally available information on the economic and political development of the country. They can work in a team and are able to present their views and defend them in discussion.
Secondary school level knowledge of the political and voting system in the Czech Republic. Basic macroeconomic aggregates and relations.
Recommended optional programme components
Recommended or required reading
LAJTKEPOVÁ, E. (2013): Veřejné finance v České republice: teorie a praxe. 1. vyd. Brno: Akademické nakladatelství CERM. (CS)
KUBÁTOVÁ, K. (2018): Daňová teorie a politika. 7. vyd. Praha: Wolters Kluwer. (CS)
Zákon č. 218/2000 Sb., o rozpočtových pravidlech, v platném znění. Zákon č. 250/2000 Sb., o rozpočtových pravidlech územních rozpočtů, v platném znění. Zákon č. 243/2000 Sb., o rozpočtovém určení daní, v platném znění. Zákon č. 128/2000 Sb., o obcích, v platném znění. Zákon č. 23/2017 Sb., o rozpočtové odpovědnosti, v platném znění. Vyhláška MF 323/2000 Sb., o rozpočtové skladbě, v platném znění. (CS)
PROVAZNÍKOVÁ, R. (2015): Financování měst, obcí a regionů: teorie a praxe. 3. roz. a aktual. vyd. Praha: Grada Publishing. (CS)
MAAYTOVÁ, A., OCHRANA, F. a J. PAVEL.(2015): Veřejné finance v teorii a praxi. 1. vyd. Praha: Grada. (CS)
Planned learning activities and teaching methods
Lectures consist of an explanation of basic principles, methodology of the discipline, problems and their solutions. Seminars are focussed on the practical mastery of the essentials, extending knowledge of the public sector and support teamwork among students and their ability to discuss and present.
Assesment methods and criteria linked to learning outcomes
Requirements for gaining the credit:
a) Active participation in seminars: one unexcused absence per semester permitted. Absences outside the permitted limit must be excused by a doctor, and the teacher has the right to assign a substitute task in the case of such absence (e.g. in the form of an essay). Absences must be excused in accordance with the BUT Study and Examination Regulations.
b) Credit test: maximum possible number of points is 20, while the minimum number of points needed for the credit is 10 (i.e. 50 %), and one resit is possible.
c) A presentation on a topic agreed with the teacher: maximum of 10 points (the minimum number of points for the credit is 5). It is possible to present the topic in a small team (max. 5 students).
It is possible to gain a maximum of 30 points from the seminars, and the credit is granted for a minimum of 15 points (min. 10 points from test + min. 5 points from presentation) + fulfilment of participation in seminars: all three classification conditions must be fulfilled and non-fulfilment of one condition cannot be replaced in any way by another.
The examination is in writing. The examination can only be taken by students who have applied through IS and have the credit entered. The examination contains test and open questions. The time available for the examination is 40 minutes, the maximum number of points available is 70, and in order to pass the examination it is necessary to get at least 35 points (i.e. 50 %).
The resulting mark for the course is the sum of the points from the seminars and the examination, and the resulting grade is in accordance with the BUT Study and Examination Regulations.
Language of instruction
The basic topics that make up the course are as follows:
1. Introduction to the study of public finances. Terms: public good, the public sector, public finance, budgetary system and public budget.
2. The theory of public choices, the specifics of decision-making in the public sector. Approaches to decision-making and their influence on the results. The political and electoral system in the Czech Republic and the financing of political parties.
3. Public revenues. The classification of public revenues. Tax and non-tax revenues.
4. Public expenditure. The classification of public expenditure. Public expenditure and aggregate demand. Factors influencing growth in public expenditure. The efficiency of public expenditure.
5. The fundamentals of tax theory and tax policy. The history of tax. Tax principle and the fairness and efficiency of taxes. Tax quotas. Tax policy.
6. Fiscal federalism. Basic terms, centralisation vs. decentralisation. Models of fiscal federalism.
7. International aspects of public finances. The EU budget process. EU budget revenues and expenditure, the position of the Czech Republic.
8. The budgetary system of the Czech Republic. Uniformity of the budgetary system. The system of public budgets. Parafiscal funds. The budgets of local government bodies.
9. The state budget. The concept of the state budget in financial and legal terms. The budget process. Revenues and expenditure in the state budget. The significance of the state budget in the budgetary system.
10. The budget deficit and public debt. Causes and possible solutions. The situation in the Czech Republic and other countries.
11. The ethics of public finances. The significance of ethics in the public sector and public finances. The ethics of redistribution. Ethical codices.
12. Social policy and social security. Models and instruments of social security. Social security in the Czech Republic.
13. The fundamentals of finances in selected branches of the public sector. The financing of education, science and research, and healthcare. The situation in the Czech Republic and other selected countries.
The main objective of the course is to create a link between public finance theory and, in the broader sense, public economy theory on the one hand, and the modern application of these theories in the sphere of public finance on the other. To achieve this it is necessary that students acquire a basic knowledge of public finance and public economics and understand the dependence of public finance on public choices.
Specification of controlled education, way of implementation and compensation for absences
Attendance at lectures is recommended, while attendance at seminars is monitored. Teaching takes place in accordance with the semester timetable. The means of substituting for missed lectures and seminars is fully in the teachers’ competence.