Importance of Tax Revenues in Czech National Budget

In: Business and Management

Submitted By niiky
Words 1543
Pages 7
University of Economics, Prague
Faculty of Business Administration
Department of Arts Management

Importance of tax revenues in Czech national budget Nikola Jankovičová

Prague, 2014

NATIONAL BUDGET OF THE CZECH REPUBLIC
National budget ensures proper functioning of the country and contains revenues and expenditures which are further divided. Revenue consists of taxes, social insurance, charges and non-tax revenues. The highest amounts of the national budget provide pension, social and health insurance, education and interest on the national debt.
The Ministry of Finance creates the national budget annually. It is submitted to the government which approves it and sends it to further approval by the Parliament. Members discuss it in three readings - basic information such as total revenues, total expenses, balance and method of settlement are approved in the first reading. After approval of these parameters, it cannot be changed. Members have a right to suggest their own overtures in the second reading. Only technical changes and the entire state budget proposal are discussed in the third reading. This should be done three months before the end of the year. If the national budget is not approved by the deputies until the end of the calendar year, the country is in the following year in the budget provisional arrangement and governed as the previous year.
Expenses are provided for every part of the state budget each month. The biggest expenses are the mandatory ones that must be paid because it is required by law. These are pensions, social insurance, welfare benefits, savings or unemployment benefits. It is also necessary to pay for the military, civil servants' salaries and employment policy. Other expenses, classified as non-mandatory, are often subject to budget cuts.
Taxes take the largest part of the state budget income - more…...

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