Domů CFC About The Czech Fiscal Council

The Czech Fiscal Council

The Czech Fiscal Council is an independent expert body whose primary mission is to evaluate whether the state and other public institutions comply with the rules of budgetary responsibility set out by Act No. 23/2017 Coll. The activity of the Czech Fiscal Council also contributes to the sustainability of the Czech Republic’s public finances and reduces the risk of over-indebtedness of the state.

The opinions and reports issued by the Czech Fiscal Council serve as inputs for the Czech government, the Chamber of Deputies and local and regional authorities so that they can plan and implement fiscal and budgetary policies as accurately and responsibly as possible. In addition, the outputs of the Czech Fiscal Council are also useful for the general public. With their assistance, every citizen can get a better understanding of the state of public finances and the direction they are taking.

Members NRR

The tasks of the Czech Fiscal Council include

To evaluate the implementation of numerical fiscal rules and to draw up and submit reports on their implementation to the Chamber of Deputies. Examples of such rules include the debt limit, the determination of the total expenditure of the public institutions’ sector, or the derivation of the state budget and state funds’ expenditure framework.
To determine the amount of the debt and announce it the way laws are announced, i.e., within one month of the first publication of the public institutions’ sector’s debt for the previous calendar year by the Czech Statistical Office.
To prepare and submit to the Chamber of Deputies a report on the long-term sustainability of public finances, including an assessment of how the direct long-term effects of planned government policies will likely affect public finances’ sustainability. In drawing up this report, the Council shall consider economic and social development, employment, and intergenerational cohesion.
To monitor the development of economic management of the public institutions’ sector.
To formulate an opinion on the calculation of the corrective component, which serves to adjust the deviation of the actual economic result of public institutions’ sector from the expected result.
The meetings of the Czech Fiscal Council run according to the Rules of Procedure of the Czech Fiscal Council. The document covers the rules of conferring and decision-making of the Council, also specifying how its meetings are prepared and convened.

Frequently asked questions about CFC

Do you want to learn more about CFC´s activities? See below for the most frequently asked questions. If you are interested in anything else, please contact us

To which ministry does the Czech Fiscal Council belong?

The Czech Fiscal Council is an independent expert body that is not part of any ministry. The Office of the Czech Fiscal Council performs the professional, organisational, administrative, personnel-related and technical tasks associated with the Czech Fiscal Council’s responsibilities.

What are the merits of the Czech Fiscal Council?

The Czech Fiscal Council’s greatest assets are its independence and expertise. Irrespective of the political situation, it can assess whether the state and other public institutions adhere to the rules of budgetary responsibility and draw attention to the steps that could destabilise public finances or result in excessive and irresponsible state debt.

Are there similar institutions abroad?

Yes. Fiscal or budgetary councils exist in all member states of the European Union, with the exception of Poland, primarily in accordance with Council Directive 2011/85/EU of 8 November 2011 on requirements for budgetary frameworks of the Member States and Regulation of the European Parliament and of the Council (EU) No 473/2013 of 21 May 2013. Such institutions include Stabilitätsrat in Germany, Office for Budget Responsibility in the United Kingdom, Centraal Planbureau in the Netherlands, Finanspolitika rådet in Sweden, Fiskalrat in Austria, or the Slovak Rada pre rozpočtovú zodpovědnost. Moreover, EU’s independent fiscal institutions have established a voluntary network (EU Independent Fiscal Institutions Network), which serves as a platform for meetings of budget councils’ representatives and the exchange of information and expert opinions. Some countries outside the European Union also have fiscal or budget councils, such as the United States of America (Congressional Budget Office), Canada (Office of the Parliamentary Budget Officer), Australia (Parliamentary Budget Office), and South Korea (National Assembly Budget Office).

Who decides on the staffing of the Czech Fiscal Council?

The Chamber of Deputies elects the members of the Czech Fiscal Council – the Chairperson at a proposal of the government, one member at a proposal of the Senate, and the other member at a proposal of the Czech National Bank.

Can the Czech Fiscal Council punish the state or public institutions for failure to comply with budgetary rules?

The Czech Fiscal Council does not have the power to impose sanctions. Its Chairperson, however, may attend government meetings in an advisory capacity and must be given a hearing if they ask to speak. The Council also writes up reports on the implementation of fiscal rules and on the long-term sustainability of public finances, which it submits to the Chamber of Deputies. Furthermore, the Czech Fiscal Council makes its reports and statements accessible to the general public on its website.

I would like more information about the activities and output of the Czech Fiscal Council: how should I proceed?

If you have not found the information you require on the Czech Fiscal Council website, feel free to use the contact form or send an e-mail to podatelna@unrr.cz.