Regional Budgets and Budgetary Process of Regions in Times ofCrisis: The Czech Case
The economic crisis has not avoided the Czech Republic. Great impact to the Czech public finance can be observed in tax revenues sharing system which falls on revenue side of Czech regions. On the other hand, expenditure side of regional budgets seemed almost indifferent to economic cycle in the first years of crisis. The chapter deals with impacts of the economic crisis on regional self government in the Czech Republic. We divide our paper into quantitative and qualitative part from the public finance perspective. The first part shows whether there is a change in the vertical allocation of resources and if the crisis resulted in a change in horizontal equalization. Qualitative part of the chapter demonstrates whether and how individual regions were operational during unexpected circumstances. The economic crisis helped us to examine the quality of regional budgetary process. We monitor how regions were able to react on slump in their revenues in the year 2009.