COMPARISON OF SUBMITTED STATE BUDGETS FOR 2022 IN THE CZECH REPUBLIC

The present bachelor thesis compares three state budget proposals for 2022, which were proposed by two different cabinets. The cabinet of Andrej Babiš and the government of Petro Fiala. While the first submitted proposal envisaged total revenues of CZK 1551.1 billion, total expenditures of CZK 1927.7 billion and total balance of CZK - 376.6 billion. The second proposal submitted in turn reduced the projected expenditure of the state budget to CZK 1893.2 billion, with increased revenues of CZK 1613.2 billion. The overall balance was forecast at CZK -280 billion. The July draft, on the other hand, increased the balance to CZK - 375 billion, with revenue at CZK 1678.3 billion and expenditure at CZK 2053.3 billion. The reason for the submitted changes was not only the change of the cabinet, but also the impact of significant exogenous factors that had an impact on both the revenue and expenditure side of the budget In the thesis, it was hypothesized that the reduction in the negative balance in the third submitted state budget for 2022 compared to the original proposal was due to changes on the revenue side of the budget. This hypothesis was confirmed. In relation to the predicted gross domestic product, the growth dynamics of the state budget revenue was quantified in the thesis. In the October 2021 budget, revenues account for 24.11 % of forecast GDP, in the March draft state budget this share rises slightly to 24.34 %, and the July draft predicts that revenues will account for 25.35 % of forecast GDP. The bachelor thesis also provides detailed quantification analysis and comparison of selected budget chapters, primarily their expenditure side, and concludes with economic policy recommendations to reduce the structural balance primarily in the form of personal income tax increases, incentives for citizens to stay in the labour market and adjustments to excise taxes.