Importance of Tax Revenues in Czech National Budget

In: Business and Management

Submitted By niiky
Words 1543
Pages 7
University of Economics, Prague
Faculty of Business Administration
Department of Arts Management

Importance of tax revenues in Czech national
budget

Nikola Jankovičová

Prague, 2014

NATIONAL BUDGET OF THE CZECH REPUBLIC
National budget ensures proper functioning of the country and contains revenues and
expenditures which are further divided. Revenue consists of taxes, social insurance, charges
and non-tax revenues. The highest amounts of the national budget provide pension, social and
health insurance, education and interest on the national debt.
The Ministry of Finance creates the national budget annually. It is submitted to the
government which approves it and sends it to further approval by the Parliament. Members
discuss it in three readings - basic information such as total revenues, total expenses, balance
and method of settlement are approved in the first reading. After approval of these
parameters, it cannot be changed. Members have a right to suggest their own overtures in the
second reading. Only technical changes and the entire state budget proposal are discussed in
the third reading. This should be done three months before the end of the year. If the national
budget is not approved by the deputies until the end of the calendar year, the country is in the
following year in the budget provisional arrangement and governed as the previous year.
Expenses are provided for every part of the state budget each month. The biggest
expenses are the mandatory ones that must be paid because it is required by law. These are
pensions, social insurance, welfare benefits, savings or unemployment benefits. It is also
necessary to pay for the military, civil servants' salaries and employment policy. Other
expenses, classified as non-mandatory, are often subject to budget cuts.
Taxes take the largest part of the state budget income - more…...

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