Economy of the most indebted and richest municipalities in the Czech republic

Many municipalities in the Czech Republic have problems with excessive debt levels. This work first uses the indicator of long-term indebtedness per capita to sorts all municipalities in the Czech Republic according to its value and with the help of more detailed analysis subsequently identifies municipalities suitable for the purposes of this work. It then analyses their financial and socio-economic data, and finally puts them in contrast with the succesful municipality. The result is a detailed description of the situation of five municipalities and formulation of recommendations for individual cases. The work finds that in most cases the extreme indebtedness of municipalities is caused by an unmanaged development project financed from a subsidy or loan that the municipalities were forced to return. Thus, there is often a situation where the municipality is unable to repay the debt from the budget surplus. The state is currently able to identify municipalities with risky indebtedness and motivate them to reduce debt but does not have sufficient mechanisms to help the affected municipalities. In conclusion, the thesis presents general findings and recommendations in the form of a proposal for the creation of tools by which the state could help the affected municipalities to reduce debt while minimizing the risk of its occurrence