Title:	The impact of social expenditure on public dept in the Czech republic and Slovakia
Authors:	Raisová, Manuela Pavliková, Ľudmila Semančíková, Jozefína
Citation:	E+M. Ekonomie a Management = Economics and Management. 2016, č. 3, s. 158-172.
Issue Date:	2016
Publisher:	Technická univerzita v Liberci
Document type:	článek article
URI:	http://hdl.handle.net/11025/22041
ISSN:	1212-3609 (Print) 2336-5604 (Online)
Keywords:	veřejný dluh;stránutí obyvatelstva;sociální výdaje
Keywords in different language:	public dept;population ageing;social expenditures
Abstract in different language:	Europe is facing the problem of growing consumption and increasing volume of public expenditure too for years. Financing of public expenditure (as a sum of short-term, medium or long term projects) is a complicated issue. Regarding the fi nancial perspective, the primary result is the creation of budget de fi cits. Countries are currently not able to deal with them, and thus this problem leads to the creation of new de fi cits. Therefore, an economy creates public debt – through the accumulation of de fi cits. The aim of our paper is to examine the effect of social expenditure on public debt. We have focused on the examination of only two countries – the Czech Republic and Slovakia. Our fi ndings con fi rm that social expenditure represents a signi fi cant proportion of public expenditure. Moreover, public expenditure and social expenditure as well have increased in volume in the previous years. Governments use them to ful fi l their social role in the economy. From this perspective, fi nancing of social expenditure also contributes to the de fi cit, and in the long term to the creation of public debt. For that reason, another objective of our paper is to verify the effect of social expenditure on public debt. We examine the primary hypothesis on the signi fi cant correlation between public expenditure and public debt. As a result, we created an econometric model to test our hypothesis that the variable of public expenditure is more signi fi cantly correlated with public debt than other selected economic variables. Moreover, we modi fi ed the model, and we tested the hypothesis that social expenditure is more signi fi cantly correlated with public debt than other selected economic variables. We found that hypothesis concerning public expenditure had been con fi rmed for both countries. Hypothesis about social expenditure was con fi rmed for the Czech Republic. However, in the case of Slovakia, this hypothesis could not be veri fi ed.
Rights:	© Technická univerzita v Liberci CC BY-NC 4.0
Appears in Collections:	Číslo 3 (2016) Číslo 3 (2016)

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