Abstract of the lecture

The presentation is divided into two main parts. The introductory part of the lecture contains the theoretical explication of the fiscal imbalance problem, deficit and debt origin and their influence on the public budgets. The second part of the lecture focuses on reforms of public budgets in general, their usual measures and supposed impacts on the public budgets. As an example of a deep reform the Concept of Public Budgets Reform in the Czech Republic (2003 - 2006) is desribed. There are also introduced risks connected with the Concept's realization. The following Czech public budget reform (2008 - 2010) is discussed too in connection to economic crisis.

Prepare answers to the following questions for the lecture so we can discuss them.

1. Is there any difference between public deficit and public debt?

2. Specify possible ways of public deficit financing.

3. Think about main features of the public budgets reform – what should be done to stabilize public budgets in general?