Course detail

Public Finance

FP-UvfPAcad. year: 2022/2023

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. 

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

doc. Ing. Eva Lajtkepová, Ph.D.

Department

Institute of Finances (ÚF)

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.

Prerequisites

Secondary school level knowledge of the political and voting system in the Czech Republic. Basic macroeconomic aggregates and relations.

Co-requisites

Not applicable.

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:
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.
 
Examination requirements:
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 80, and in order to pass the examination it is necessary to get at least 40 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.

Course curriculum

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. 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.
8. 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.
9. The budget deficit and public debt. Causes and possible solutions. The situation in the Czech Republic and other countries.
10. Social policy and social security. Models and instruments of social security. Social security in the Czech Republic.

11. 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.

Work placements

Not applicable.

Aims

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. Teaching takes place in accordance with the semester timetable. The means of substituting for missed lectures and seminars is fully in the teachers’ competence.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

LAJTKEPOVÁ, E. Veřejné finance v praxi České republiky. 1. vyd. Brno: Akademické nakladatelství CERM, 2021. (CS)
KUBÁTOVÁ, K. Daňová teorie a politika. 7. vyd. Praha: Wolters Kluwer, 2018. (CS)
Zákon č. 218/2000 Sb., o rozpočtových pravidlech ze dne 27. června 2000. Zákon č. 250/2000 Sb., o rozpočtových pravidlech územních rozpočtů ze dne 7. července 2000. Zákon č. 243/2000 Sb., o rozpočtovém určení daní ze dne 29. června 2000. Zákon č. 128/2000 Sb., o obcích ze dne 12. dubna 2000. Zákon č. 23/2017 Sb., o rozpočtové odpovědnosti ze dne 17. ledna 2017. Vyhláška MF 323/2002 Sb., o rozpočtové skladbě ze dne 2. července 2002. (CS)

Recommended reading

VANČUROVÁ, A., LÁCHOVÁ, L. a H. ZÍDKOVÁ.  Daňový systém ČR. 1.vyd. Praha: Wolters Kluwer, 2020. (CS)

Classification of course in study plans

  • Programme BAK-UAD Bachelor's, 1. year of study, summer semester, compulsory

  • Programme BAK Bachelor's

    branch BAK-UAD-D , 1. year of study, summer semester, compulsory

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer

doc. Ing. Eva Lajtkepová, Ph.D.

Syllabus

The main topics of the lectures are as follows:
1. Introduction to the study of public finances. Basic terms.
2. Theory of public choice, specific features of decision-making in the public sector.
3. Public revenues. Classification of public revenues. Tax and non-tax revenues.
4. Public expenditure.
5. Fundamentals of tax theory and policy.
6. Fiscal federalism.
7.-8.Budgetary system of the Czech Republic.
9.-10. State budget.
11. The budget deficit and public debt.
12. The basics of Social policy and social security.
 

Exercise

13 hours, compulsory

Teacher / Lecturer

doc. Ing. Eva Lajtkepová, Ph.D.

Syllabus

1. Introduction, classification conditions and examinations. Revising basic concepts. 
2. The financing of political parties.
3. The financing of health care.
4. Social security in the Czech Republic.
5. The budgets of local government bodies.
6. Classification written examination.