Czech municipalities post record surplus of Kc193bn in 2013

​Budget revenues of Czech municipalities, excluding the capital of Prague, grew by Kc14.8bn, of 8 percent, to Kc192.7bn last year, their budget surplus tripling to a record of Kc13bn, according to an analysis carried out by CRIF - Czech Credit Bureau.
In 2012, municipalities' budget surplus totalled Kc4.3bn.
Tax revenues in last year reached Kc118.8bn, up by 15 percent year-on-year.
Per capita revenues increased by Kc1.644.
Subsidies grew by 1 percent to Kc41.1bn.
Expenditures rose by Kc6bn to Kc179.7bn.
"Despite the unexpected rise of revenues, municipalities did not spend too much money, which resulted in a record-high budget surplus," Vera Kamenickova of CRIF said.
Surplus was shown by municipalities of all sizes.
Municipalities' debts last year decreased by Kc0.5bn to Kc57.5bn. The biggest fall of 1.7 percent to Kc41.6bn was registered by municipalities with population of more than 5,000. The average debt of large municipalities amounts to Kc6.235 per capita. Debts of the smallest municipalities with less than 200 inhabitants, on the other hand, increased by 30 percent to Kc0.7bn.
A total of 917 municipalities own shares in at least one company. The biggest number of companies is owned by Ostrava (20) and Prague (17). There are a total of 1,263 of companies owned by municipalities. Almost 25 percent of them generate annual sales between Kc10m and Kc30m. The annual turnover of 12 companies exceeds Kc1.5bn.
The analysis also shows that rating of municipalities has improved. According to CRIF, 35 percent of municipalities have the best rating and another 50 percent fare very well. Only 14 percent of municipalities could have problems to obtain loans.
According to CRIF board member Pavel Finger, the rating of municipalities is better than in 2010 and only slightly worse than in 2009.