Received:
2024-07-11 | Accepted:
2024-11-21 | Published:
2024-12-30
Title
COVID-19 as a factor influencing municipal budgets: a case study of Czech conditions
Abstract
The COVID-19 pandemic has affected all areas of life, both private and public. The municipalities, which had to deal with increased expenses on the one hand and lower incomes on the other, were no exception. The presented research aims to quantify the impact of the COVID-19 pandemic on the budgets of selected cities in the Czech Republic. A total of 29 municipal budgets (municipalities) are evaluated in 2021 in comparison with their previous economies during the period of 2010-2020. 6 indicators are monitored (five of which are income ones) using a wide range of mathematical and statistical methods, e. g. Shapiro-Wilk test, Levene test, Kolmogorov-Smirnov text, and others. Based on the results obtained, there are no significant adverse impacts of the COVID-19 pandemic on the economy within the budget for the year 2021, both within the framework of total income and total expenditure. The research also did not show any fundamental differences in the management of evaluated cities, which, according to the applicable legislation, are divided into a multi-level system of administration, i.e. city districts or city parts, compared to cities with single-level management, i.e. cities with no territorial divisions.
Keywords
COVID-19 pandemic, Czech Republic, expenditures, municipal budgets, revenues
JEL classifications
H61
, H76
URI
http://jssidoi.org/jesi/article/1264
DOI
Pages
348-363
Funding
This research was supported by the Student Grant Competition of the Faculty of Economics, VSB-Technical University of Ostrava, project registration number SP2023/064 “Public budgets as a basis for the use of multi-criteria methods”.
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
References
Aristovnik, A. (2012). Fiscal Decentralisation In Eastern Europe: Trends and Selected Issues. Transylvanian Review of Administrative Sciences, 37E, 5-22. http://doi.org/10.2139/ssrn.2187475
Search via ReFindit
Bečica, J., Vavrek, R., Galecka, M., & Smolny, K. (2021). Application of Multi-Criteria Analysis on Theatres' Efficiency - Czech and Polish Comparative Case Studies. Croatian and Comparative Public Administration, 21(3), 423-455. https://doi.org/10.31297/hkju.21.3.5
Search via ReFindit
Botta, A., Caverzasi, E., & Russo, A. (2020). Fighting the COVID-19 Crisis: Debt Monetisation and EU Recovery Bonds. Intereconomics, 55, 239-244. https://doi.org/10.1007/s10272-020-0907-z
Search via ReFindit
Cantó, O., Figari, F., Fiorio, CV., Kuypers, S., Marchal, S., Romaguera-de-la-Cruz, M., Tasseva, IV., & Verbist, G. (2021). Welfare Resilience at the Onset of the COVID-19 Pandemic in a Selection of European Countries: Impact on Public Finance and Household Incomes. Review of Income and Wealth, 68(2), 293-322. https://doi.org/10.1111/roiw.12530
Search via ReFindit
Conte, A., Lecca, P., Sakkas, S., & Salotti, S. (2020). The territorial economic impact of COVID-19 in the EU: a Rhomolo analysis. https://joint-research-centre.ec.europa.eu/reports-and-technical-documentation/territorial-economic-impact-COVID-19-eu-rhomolo-analysis_en
Search via ReFindit
Cuadrado-Ballesteros, B., Garcia-Sánchez, I. M., & Prado-Lorenzo, J. M. (2013). Modes of Public Serivces Delivery The Case of Spanish Local Governments. Lex Localis – Journal of Local Self-Government, 11(2), 119-137. https://doi.org/10.4335/241
Search via ReFindit
Daňková, A., Čepelová, A., & Koreňová, D. (2017). Process Efficiency of Local Self-Government in Slovak Republic. Journal of International Studies, 10, 309-317. https://doi.org/10.14254/2071-8330.2017/10-2/21
Search via ReFindit
De Mello, L. R. (2000). Fiscal Decentralisation and Intergovernmental Fiscal Relations: A Cross-Country Analysis. World Development, 28(2), 365-380. 00123-0 https://doi.org/10.1016/S0305-750X(99)
Search via ReFindit
Exner, J. (2004). Municipalities, cities, town districts: on local public administration and its deconcentration by statutory decrees in territorially divided cities. Prague: Libri.
Search via ReFindit
Finzgar, M., & Oplotnik, Z. J. (2013). Comparison of Fiscal Decentralization Systems in EU-27 According to Selected Criteria. Lex Localis – Journal of Local Self-Government, 11(3), 651-672. https://doi.org/10.4335/11.3.651-672(2013)
Search via ReFindit
Foremny, D., Sorribas-Navarro, P., & Castelló, J. (2020). Living at the Peak: Health and Public Finance During the COVID-19 Pandemic. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3578483
Search via ReFindit
Governatori, M., & Yim, D. (2012). Fiscal Decentralisation and Fiscal Outcome. Economic Papers, 468, 1-28.
Search via ReFindit
Heald, D., & Hodges, R. (2020). The accounting, budgeting and fiscal impact of COVID-19 on the United Kingdom, Journal of Public Budgeting. Accounting & Financial Management, 32(5), 785-795. https://doi.org/10.1108/JPBAFM-07-2020-0121
Search via ReFindit
Hejduková, P. (2015). Public finance. Prague: C.H. Beck.
Search via ReFindit
Hendrych, D., Kavěna, M., & Pavlík, M. (2014). Administrative science: theory of public administration. Prague: Wolters Kluwer.
Search via ReFindit
Kočí, R. (2012). Municipal self-government in the Czech republic: a practical handbook with jurisprudence. Prague: Leges.
Search via ReFindit
Kopecký, M. (2017). Legal status of municipalities and regions – basics of municipal law. Prague: Wolters Kluwer.
Search via ReFindit
Koudelka, Z., Průcha, P., & Zwyrtek Hamplová, J. (2019). Act on municipalities (municipal establishment). Prague: Leges.
Search via ReFindit
Mazllami, J. (2021). Fiscal Decentralisation and Alternative Financial Sources for the Local Self-Government in Republic of North Macedonia – Overview. SEEU Review, 16, 14-29. https://doi.org/10.2478/seeur-2021-0006
Search via ReFindit
Mazllami, J., & Osmani, R. (2014). The Impact of the Fiscal Decentralization Process in the Local Public Finance of the Western Balkan Countries: A Comparative Analysis. Economy & Business Journal, 8, 730-741.
Search via ReFindit
Mokrá, K., Poláková, G., Horváthová, P., & Stverková, H. (2023). Work Engagement and Burnout Syndrome of Civil Servants during and after the COVID-19 Pandemic. Polish Journal of Management Studies, 27(1), 221-240. https://doi.org/10.17512/pjms.2023.27.1.13
Search via ReFindit
Mura, L., Buleca, J., Horváth, P., Machyniak, J., & Šebík, K. (2014). Identification of Funding of Regional Governments Using Correlation Analysis. Procedia Economics and Finance, 15, 154-161. 00466-3 https://doi.org/10.1016/S2212-5671(14)
Search via ReFindit
Neubauerová, E. (2003). Financial aspects of public administration decentralisation. Bratislava: Ekonóm.
Search via ReFindit
Oates, W. E. (1972). Fiscal Federalism. New York: Harcourt Brace Jovanovich.
Search via ReFindit
Opera, F., Onofrei, M., Paraschiv, G., & Cojorcariu, L. (2022). Do Local Budgets Influence Regional Development? Empirical evidence from Romania. Lex Localis – Journal of Local Self-Government, 20(1), 77-99. https://doi.org/10.4335/20.1.77-99(2022)
Search via ReFindit
Papcunová, V., Vavrek, R., & Dvořák, M. (2021). Role of Public Entities in Suitable Provision of Public Services: Case Study from Slovakia. Administrative Sciences, 11(4), 143. https://doi.org/10.3390/admsci11040143
Search via ReFindit
Provazníková, R. (2015). Financing cities, municipalities and regions: theory and practice. Prague: Grada Publishing.
Search via ReFindit
Průcha, P. (2011). Local administration. Brno: Masaryk University.
Search via ReFindit
Rodden, J. (2002). The Dilemma of Fiscal Federalism: Grants and Fiscal Performance around the World. American Journal of Political Science, 46(3), 670-687. https://doi.org/10.2307/3088407
Search via ReFindit
Sedmihradská, L., & Bakoš, E. (2016). Municipal Tax Autonomy and Tax Mimicking in Czech Municipalities. Lex Localis – Journal of Local Self-Government, 14(1), 75-92. https://doi.org/10.4335/14.1.75-92(2016)
Search via ReFindit
Shin, G. (2017). Corporate Tax Policy and Multinational Corporations in the American States: Exploring the Intervening Effect of Local Fiscal Decentralization. Journal of Urban Affairs, 40(5), 679-704. https://doi.org/10.1080/07352166.2017.1360728
Search via ReFindit
Slavinskaite, N. (2020). Review of Fiscal Decentralization in European Countries. International Journal of Contemporary Economics and Administrative Sciences, 10(2), 345-355. https://doi.org/10.5281/zenodo.4429787
Search via ReFindit
Svoboda, F., Špalková, D., Špaček, D., Bakoš, E., Šelešovský, J., Špačková, Z., Štarhová, I., Soukopová, J., Škarabelová, S., & Pavlík, M. (2017). Economy of public sector. Prague: Ekopress.
Search via ReFindit
Tiebout, C. M. (1956). A Pure Theory of Local Expenditure. Journal of Political Economy, 64, 416-424. https://doi.org/10.1086/257839
Search via ReFindit
Tománek, P. (2017). Tax revenues structure of municipal budgets in size groups of municipalities. In: I. Vaňková (Ed.), 12th International Scientific Conference on Public Economics and Administration 2017 (pp. 342-346). Ostrava (Czechia): VŠB-TU Ostrava.
Search via ReFindit
Varadzin, F., & Bečica, J. (2016). Municipalities and production potential. Prague: Professional Publishing.
Search via ReFindit
Vartasová, A., & Červená, K. (2023). Position of the Local Development Fee in the System of Local Taxes and Fees in the Slovak Republic. Lex Localis – Journal of Local Self-Government, 21(3), 525-544. https://doi.org/10.4335/21.3.525-544(2023)
Search via ReFindit
Vavrek, R. (2024a). How much is too much: A case study of local self-government units in Slovakia using absolute variability to determine the importance of financial criteria in MCDM analysis. PLOS ONE, 19(10), e0311842. https://doi.org/10.1371/journal.pone.0311842
Search via ReFindit
Vavrek, R. (2024b). Spatial Interpretation of Multi-Criteria Analysis: A Case Study with a Decreasing Number of Criteria and Subjective Approach to Determining Their Importance. Mathematics, 12(22), 3497. https://doi.org/10.3390/math12223497
Search via ReFindit
Vavrek, R., & Bečica, J. (2022). Similarity of TOPSIS results based on criterion variability: Case study on public economics. PLOS ONE, 17(8), e0271951. https://doi.org/10.1371/journal.pone.0271951
Search via ReFindit
Vavrek, R., Papcunová, V., & Tej, J. (2020). Evaluation of Financial Management of Towns in relation to Political Cycles using CV-TOPSIS. Lex Localis – Journal of Local Self-Government, 18(2), 231-252. https://doi.org/10.4335/18.2.231-252(2020)
Search via ReFindit
RSS 1.0
