Analysis of ways improving efficiency in the public sector by using example of a semi-budgetary organization Czech Geological Survey

This paper is focused on evaluation and improvement of the allocative efficiency of the public sector. The introductory chapters give us information about the necessity of existence, operation and financing of the public sector and its representation in public finances. Rules for establishing, financing and management of semi-budgetary organizations are discused in a more elaborated manner. The theoretical part explains the concept of efficiency and provides a detailed overview of methods of measuring the efficiency in the public sector by various authors. In the practical part, the theoretical approaches are demonstrated on the example of the Czech Geological Survey (ČGS). ČGS is a semi- budgetary organization established by the Ministry of the Environment, but partly also works as a research organization. Also there are given the competences and organizer's requirements. Financing of the organization is provided from several sources, whereas the contribution from the organizers part is reduced on a year to year basis and the organization is forced to cover the loss by research activities and providing services to foreign customers. The effectiveness analysis is based on the concept of Sintonen. However it is complicated by the fact that ČGS is on one hand A semi-budgetary organization and on the other A research organization. For the semi-budgetary organizationS the appropriate approach is to minimize costs, but for the research organization it is rather about increasing revenues. For the highest efficiency possible it is necessary to find a combination of both approaches.