<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Czech municipalities keep a substantial and growing volume of bank deposits. An analysis of determinants of unreserved deposits in 2021 suggests that municipalities are precautionary and accumulate fiscal reserves if they can and do so to stabilize their budget management. Signs of low activity of municipal administration such as low creation of new assets and low execution of the approved budget were not related to the volume of unreserved deposits in 2021. The change in the impact of the municipal debt on fiscal savings from strongly negative to weakly positive between 2016 and 2021 calls for more research on the impact of the introduction of new local debt regulation.</p>
</abstract>

Czech municipalities keep a substantial and growing volume of bank deposits. An analysis of determinants of unreserved deposits in 2021 suggests that municipalities are precautionary and accumulate fiscal reserves if they can and do so to stabilize their budget management. Signs of low activity of municipal administration such as low creation of new assets and low execution of the approved budget were not related to the volume of unreserved deposits in 2021. The change in the impact of the municipal debt on fiscal savings from strongly negative to weakly positive between 2016 and 2021 calls for more research on the impact of the introduction of new local debt regulation.

Fiscal savings of Czech municipalities: Precaution or inaction of their administration?

Prague University of Economics and Business

Review of Economic Perspectives

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Czech municipalities keep a substantial and growing volume of bank deposits. An analysis of determinants of unreserved deposits in 2021 suggests that...

Fiscal savings of Czech municipalities: Precaution or inaction of their administration?

Published Online: Sep 20, 2023

Page range: 203 - 216

Received: May 15, 2023

Accepted: Jul 19, 2023

DOI: https://doi.org/10.2478/revecp-2023-0007

Keywords
bank deposits, Czech Republic, fiscal reserves, local government

© 2023 Lucie Sedmihradská, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Fiscal savings of Czech municipalities: Precaution or inaction of their administration?

Published Online: Sep 20, 2023

Page range: 203 - 216

Received: May 15, 2023

Accepted: Jul 19, 2023

DOI: https://doi.org/10.2478/revecp-2023-0007

Keywordsbank deposits, Czech Republic, fiscal reserves, local government

© 2023 Lucie Sedmihradská, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
bank deposits, Czech Republic, fiscal reserves, local government