||The purpose of this bachelor works is to compare Czech state budget with OECD countries in the area of social system and based on literature and own empirical research to prove propriety and efficiency of resources used for financing Czech welfare state. At the beginning are defined the aims of social system and also indirect impacts of social expenditures on the labour market and economic performance. I deal with the structure, expenditures and financing of Czech social system and afterwards I compare it with selected OECD countries. The most important part of this works are theoretical and empirical analyses of the impact of social expenditures on labour market, productivity of labour and GDP. In theoretical part are resumed the results of studied literature, which deals with relationship between the size of welfare state and monitored economic values. I create my own research of impacts of social expenditures on GDP in the empirical part. At the end I conclude the results of my work and suggest some solutions for Czech social system.