World Bank2013-06-122013-06-122001-090-8213-5030-7https://hdl.handle.net/10986/13864The Czech government is confronted with a worsening fiscal situation. The structural deficit ballooned in 2000, and it is expected to widen further in 2001. The report suggests that, at this stage of the recovery, fiscal retrenchment instead should be in order, both to make room for private demand to expand, without putting undue pressure on interest rates, and/or on the external current account, and, to set the country on track towards adhering to Stability and Growth Path when in the European Union (EU). The report sees a stronger case, and greater scope for adjustment on the expenditure, than on the revenue side. Expenditures have shot up in the last three years, to a level which exceeds those observed in comparable countries. Worse, most existing expenditure programs, seem locked in upward trajectories, and fresh spending pressures (arising from EU accession, contingent liabilities, or decentralization) are building up. The report illustrates, for selected sectors (bank restructuring, social protection, health, education, transport, and housing), the challenges involved in correcting expenditure trajectories. A key message is that, to succeed, the process of expenditure reform will need to be firmly grounded in the development of analytic capacities, in both core and line agencies, linked with enhancements in the country's institutions, and procedures for fiscal management.en-USCC BY 3.0 IGOASSETSAUTHORITYBANK BAILOUTSBANK RESTRUCTURINGBANKING SECTORBORROWINGBUDGET PROCESSBUDGET SYSTEMSBUDGETARY FUNDSBUREAUCRATIC SYSTEMCENTRAL GOVERNMENTCENTRAL GOVERNMENTSCONSOLIDATIONCONSUMER SATISFACTIONCOST BENEFIT ANALYSISCPIDEBT SERVICEDECENTRALIZATIONDEFICITSDEVOLUTIONDISTRICTSECONOMIC RECOVERYEIBEMPLOYMENTENTITLEMENTSEXCESS DEMANDEXPENDITUREEXPENDITURE REFORMEXPENDITURE RESPONSIBILITIESEXTRABUDGETARY FUNDSEXTRAORDINARY ITEMSFINANCIAL CRISISFINANCIAL DIFFICULTIESFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL RESOURCESFINANCIAL SUSTAINABILITYFINANCING SOURCESFISCALFISCAL DECENTRALIZATIONFISCAL DEFICITFISCAL MANAGEMENTFISCAL POLICYFISCAL PRESSURESFISCAL REVENUEFISCAL SITUATIONFISCAL STANCEFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTFORESTRYGNPGOVERNMENT EXPENDITURESGOVERNMENT HOUSINGGOVERNMENT INTERVENTIONGOVERNMENT OFFICIALSGOVERNMENT REVENUESGRANT PROGRAMSGROSS DOMESTIC PRODUCTGROSS NATIONAL PRODUCTHOUSING DEMANDHOUSING POLICYHOUSING SUBSIDIESINCOMEINCOME LEVELSINDEXATIONINDIVIDUAL ACCOUNTSINSTITUTIONAL REFORMSINTEREST RATESINTERGOVERNMENTAL FISCAL RELATIONSLABOR FORCELEGAL FRAMEWORKLEGISLATIONLICENSESLOCAL AUTHORITIESLOCAL GOVERNMENTLOCAL GOVERNMENTSMANDATED EXPENDITURESMINISTRY OF FINANCEMUNICIPAL CREDITMUNICIPAL DEBTMUNICIPAL GOVERNMENTMUNICIPALITIESNATIONAL LEVELOPERATING LOSSESPENSIONSPOLICY INSTRUMENTSPOLITICAL CONSENSUSPRIVATE COMMERCIAL BANKSPRIVATE HOUSINGPRIVATE SECTORPRIVATE SECTOR FINANCINGPRIVATIZATIONPRODUCERSPROVISIONINGPROVISIONSPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC EXPENDITURE MANAGEMENTPUBLIC EXPENDITURE REVIEWPUBLIC EXPENDITURESPUBLIC FINANCESPUBLIC HOUSINGPUBLIC POLICYPUBLIC RESOURCESPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICESPUBLIC SPENDINGPUBLIC TRANSPORTREPRESENTATIVESRESOURCE USERETIREMENTREVENUE REFORMREVENUE SOURCESROADSSAVINGSSOCIAL INSURANCESOCIAL PROTECTIONSTATE AGENCIESSTATE BUDGETSTATE FUNDSTAXTAX BURDENTAX REVENUESTAX SUBSIDIESTOTAL EXPENDITURESTRADE UNIONSTRANSPORTUNEMPLOYMENTUNEMPLOYMENT RATEURBAN CONGESTIONUSER CHARGESUTILITIESWorld Bankhttps://doi.org/10.1596/0-8213-5030-7