Oecd Economic Surveys: Czech Republic - 2004 Issue 17 (Oecd by Organisation for Economic Co-Operation and Development

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9 per cent of the population. 13. The original “Czech” Roma community (about 5 000 persons) was almost wiped out during the Second World War. After the war, many Roma came, often involuntarily, from Hungary, Romania and eastern Slovakia to the evacuated Czech border area and throughout the industrial areas of Bohemia and Moravia. Another migratory movement from eastern Slovakia took place in the 1960s. © OECD 2004 42 OECD Economic Surveys: Czech Republic Bibliography Czech National Bank (2004), Inflation Report, July 2004, Prague.

Source: Ministry of Finance. 4 Under this system, the government submits to Parliament, together with the standard state budget, a new document (the medium-term expenditure framework, MTEF) that outlines three-year deficit targets and, importantly, spending ceilings for not only the state budget but also for seven state extra-budgetary funds. The approach in the MTEF is to outline a three-year deficit profile, project a revenue stream (taking into account active measures) and from this derive expenditure ceilings.

This Chapter first takes a detailed look at the 2003 budget outcome. This is followed by an overview of the fiscal reform programme, an assessment of budgeting issues (including the new medium-term budgeting framework) and progress in active tax and spending measures. The final sections of the Chapter look at issues in public spending reform. 1. 1. Policy assessment on fiscal policy and public-expenditure reform Central government budgeting – The medium-term budgeting framework has the capacity to harden budget constraints and force a longer-term outlook through its legally binding threeyear spending ceilings.

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