Fiscal imbalances: How Should Public Finance React?
|Year of publication||2014|
|Type||Article in Proceedings|
|Conference||European Financial Systems 2014. Proceedings of the 11th Internat ional Scientific Conferenc|
|MU Faculty or unit|
|Field||Management and administrative|
|Keywords||crisis; public finance; efficiency; effectiveness; public procurement|
|Description||After 2008, one of the main issue in EU countries became growing deficit of public finances. This paper argues, that th e most feasible way how to improve growing fiscal imbalances in Czech Republic and Slovakia is to focused on efficiency improvements, especially in contracting of pu blic services and public procurement. Our ten year long research in contracting of public services shows, that low level of competition, lack of motivation and poor cont ract management skills are the main issues. In public procurement, active and passive co rruption can be the source of inefficiency. According to our estimates, up to 5% of GDP is wasted because of allocative and technical inefficiencies in ou r public sector. Improvement solutions are briefly described in conclusions of this paper, but the core problem can be lack of political will and of implementation capacity.|