Open Access
Article
SciPap-1244
Effect of the COVID-19 Pandemic on the Management of Czech Regions: The Case of the Moravian-Silesian Region
by
Irena Szarowská 1,* 
1 School of Business Administration in Karvina, Department of Finance and Accounting, Silesian University in Opava, Univerzitní náměstí 1934/3, Karviná 733 40, Czechia
* Authors to whom correspondence should be addressed.
Abstract: The aim of the article is to examine financial impact of the COVID-19 pandemic on the financial management of Czech regions, especially on the Moravian-Silesian Region. Significant pressures to deepen the imbalance between public revenues and expenditures are reflected at the level of regional budgets, too. First, an empirical evidence is provided focusing on Czech regional budgets before the pandemic. Results suggest a very good financial condition of Czech regions as is regularly confirmed by a fulfilment a set of Ministry of Finance monitoring indicators. Next, the article focuses on the main measures in the financial management of the Moravian-Silesian Region. It was found that the Regional Council implemented 296 budgetary measures in the amount of 41.560.077 thousand CZK as a response on the COVID-19 pandemic in 2020. Responsible financial management of the Moravian-Silesian Region was also confirmed by the approval of a favourable loan in December 2020, which will allow to continue investing despite the effect of COVID-19 pandemic.
Keywords: Financial Stability, Region, Covid-19 Pandemic, Crisis, Regional Governance, Financial Management, Budgetary Measure
JEL classification: E62 - Fiscal Policy, G01 - Financial Crises, H12 - Crisis Management, H7 - State and Local Government • Intergovernmental Relations
Received: 8 February 2021 / Revised: 15 March 2021 / Accepted: 16 March 2021 / Published: 14 April 2021
