THE CURRENT SUSTAINABILITY OF LOCAL BUDGETS IN THE CZECH REPUBLIC

The area of sustainability of public budgets is currently a key global issue of public economy worldwide. The sustainability of public budgets affects not only the domestic economy but also affects international relations, foreign trade, the balance of payments and the country's position on an international business scale. It also directly affects the level of interest rates on government bonds and hence the financing of public debt management. To manage the public economy is thorough knowledge of the real decision-making and allocation mechanisms at all levels of public budgets. From a budgetary perspective, the public economy in the Czech Republic is characterized mainly by the state budget, 6.249 municipal budgets and 14 budgets of local government units, including budgets of state funds, public health insurance companies, state-owned enterprises and micro-regions. Indebtedness in 2015 was showed in 3.255 municipal budgets and in all 14 local government units, which are comparable to the situation 10 years ago. All of these all units are together subject to annual statutory audit, which mainly represents the analysis of the system of the Audit informative and monitoring indicators (ASIMI). Municipalities reported at the end of 2015 the total debt of EUR 3,10 billion and local government units of EUR 0,94 billion, which is by 3,0 % more than in the previous year. Municipalities and local government units currently show better indebtedness ratio than the state - of the total volume of public debt, it accounts for only 9%. The paper analyzes the outcome of the audit with the use of absolute and relative indicators and suggests possible changes and consolidation of municipal and local government budgets in the Czech Republic.