25th February 2013

Ministry of Finance: Bill on Financial Responsibility introduced

The Ministry of Finance introduced the Bill on Financial Responsibility (zákon o finanční odpovědnostni) that implements provisions of the organic Act on Financial Responsibility (the so-called financial constitution). The Bill contains of further details regarding the financial responsibility and its implementation to other Acts. One of the pillars of the financial responsibility is budget planning. Public institution should draw up the budget expenditure plan that reflects the financial forecast prepared by the Ministry of Finance (the Forecast Council of the Ministry should be set up). The Bill also stipulates the role of the Ministry that should be responsible for announcing the financial situation, budget affairs, and outlook of public institutions that are obliged to do so. 
The Bill also regulates the process of payments flow to municipalities and regions that are based on the tax revenue principle. In case regions and municipalities do not fulfill duties of financial responsibility (the indebtedness rate exceeding the 60 per cent of average income in four succeeding years), the Ministry is allowed to stop the payment flow as an incentive to lower the indebtedness rate.
The Ministry welcomes any commentary procedure till 22 March.
For further information, click here (explanatory report).

Members of the American Chamber of Commerce in the Czech Republic