Threats in Analytical Perspective: Trends in the Development of Selected Expenditures of the Budgetary System of the Czech Republic in 2003–2023

This diploma thesis focuses on the trends and dynamics of the development of selected expenditures of the budgetary system of the Czech Republic and their relative indicators over the period of years 2003-2023. The selected expenditures include mandatory expenses, mandatory social transfers, debt service expenses, salary expenditures in government-regulated sector and investments in transport infrastructure by the State Fund of the Transport Infrastructure. The analysis shows that the trend in state budget expenditures has been increasing significantly faster than the budget revenues trend as confirmed by the prevailing budget deficits. The share of mandatory expenses in total expenditures is also increasing. In the case of mandatory social transfers as a share of total mandatory expenditures, the growth trend is only moderate. The highest average year-on-year growth rate is observed in transport infrastructure investments by the State Fund of the Transport Infrastructure. However, the trend in salary expenditures grows faster than that of investment expenditures in transport infrastructure. Overall, the smallest category among the monitored expenditures is debt service, although in some years it exceeded transport investment spending. Main sources for practical research consisted of state final account attachments, transport yearbooks and other publicly accessible official sources. Policy recommendations include the need to balance state budget revenues and expenditures, primarily through reducing the expenditure side, reducing debt service expenses and redirecting these funds toward productive expenditures. In salary related expenditure it is recommended to manage salary policy that does not drive wage growth in private sector while being disconnected from labour productivity growth.