The Function of Transfers in the Budgets of Municipalities

Transfers are an important source of financial management of municipalities in the Czech Republic. The providing of transfers to municipalities is performed by the state budget, state funds, regional budgets or the budgets of the European Union. They are intended to community self-financing activities and to funding of transferred performance of state power; the main aim of this article is to evaluate the function and importance of transfers in the budgets of municipalities. The used method is analysis of actual volume of transfers to municipalities according to the type, function and provider and further by the distribution of transfers on the current one and capital one and on the claimable and non-claimable transfers. The results of the analysis point out to the current role of transfers in the financial management of the municipalities, they also evaluate the importance of transfers within self-governing community activities and describe the expected effects of government policy on transfers to municipalities.