Czech Republic : Enhancing the Prospects for Growth with Fiscal Stability

World Bank

Washington, DC:World Bank

关键词: ASSETS;    AUTHORITY;    BANK BAILOUTS;    BANK RESTRUCTURING;    BANKING SECTOR;   

DOI  :  10.1596/0-8213-5030-7
RP-ID  :  22888

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The Czech government is confronted witha worsening fiscal situation. The structural deficitballooned in 2000, and it is expected to widen further in2001. The report suggests that, at this stage of therecovery, fiscal retrenchment instead should be in order,both to make room for private demand to expand, withoutputting undue pressure on interest rates, and/or on theexternal current account, and, to set the country on tracktowards adhering to Stability and Growth Path when in theEuropean Union (EU). The report sees a stronger case, andgreater scope for adjustment on the expenditure, than on therevenue side. Expenditures have shot up in the last threeyears, to a level which exceeds those observed in comparablecountries. Worse, most existing expenditure programs, seemlocked in upward trajectories, and fresh spending pressures(arising from EU accession, contingent liabilities, ordecentralization) are building up. The report illustrates,for selected sectors (bank restructuring, social protection,health, education, transport, and housing), the challengesinvolved in correcting expenditure trajectories. A keymessage is that, to succeed, the process of expenditurereform will need to be firmly grounded in the development ofanalytic capacities, in both core and line agencies, linkedwith enhancements in the country's institutions, andprocedures for fiscal management.