On the problems concerning regional budgets

In the process of introducing the two-level charac­ter of the regional administrations (which is based in the Constitution of the Czech Republic) new legal re­gulation concerning the rules of financial management has been accepted. This regulation does not concern only the newly created regions, but it concerns also municipalities and leagues of municipalities. The re­gulation is essentially a legal framework for regional budgets financial management. This framework is co­vered by an independent law. Until 2000, the regional budgets were represented only by the municipal bud­gets and budgets of district administrations as state organs. The problems related to this issue were then covered by the law of the budgetary rules of the Repub­lic, no. 576/1990 of the Collection, in the wording of later amendments.