Geografie 2007, 112, 17-32

Regional dimension of fiscal policy on the example of public investment expenditures in Czechia

Marie Macešková

Katedra sociální geografie a regionálního rozvoje, Přírodovědecká fakulta Univerzity Karlovy, Albertov 6, 128 43 Praha 2, Czechia

This article deals with a relatively new theme - that ofterritorial impacts analysis of fiscal policy, or more precisely of implicit regional policy. The nature of public finance regional distribution within fiscal policy has essential regional impacts and implications for regional development. The reason for this statement embodies in the fact that the volume of finance allocated within fiscal policy is several times higher than the one distributed within explicit regional policy. A unique database, including the investment expenditures of the state budget during the period 1995-2003, is used for the purpose of regional analysis. A hypothesis on extremely uneven regional distribution of public capital expenditures in favour of the most socioeconomically developed regions is tested. Furthermore, it is presumed that regional allocation of these financial resources is in accordance with principles of the strategic form of regional policy. Finally, regional analysis of expenditures of the selected state extra-budget funds is undertaken.