Work detail

Karel Engliš-The Theory and the Practice of the Public Finance in the 1920 ´s in Czechoslovakia

Author: Mgr. Petra Lubichová
Year: 2002 - summer
Leaders: doc. Ing. Karel Půlpán CSc.
Consultants:
Work type: Economic Policy
Masters
Language: Czech
Pages: 118
Awards and prizes:
Link:
Abstract: Prof. Karel Engliš belonged to the most important personalities of Czechoslovakia in the interwar period. This work is focused on his theoretical and practical contribution to the area of public finance. Engliš´s theoretical approach was heavily influenced by his university teacher Albín Bráf -- one of the "fathers" of the Czech economic science, nevertheless, Engliš advanced much further than his teacher in his thought. Engliš´s teleological theory of national economy became an original contribution to the Czech economic thought and its significance "crossed the borders" of our country. Engliš worked out his economic theory to various parts of public finance, the reader is made familiar (in the third chapter) with the following problems: the theoretical construction of the state budget, the budget revenues and the tax system, the government debt and the government credit, the financial management of the autonomous territorial unions.
Karel Engliš was given an outstanding chance to apply his theoretical views to the economic practice of the young Czechoslovak Republic -- he held office as minister of finance in six Czechoslovak governments in the 1920´s. (The second chapter is devoted to Engliš´s work in practice.) Above all, Engliš spent these years struggling for the state budget balance, what he considered to be -- besides the "healthy" currency -- one of the main pillars of successful economic development. He also achieved putting through a formal aspect of the state budget reform that was conceived more or less in accordance with his teleological theory of national economy. He successfully endeavoured after solving the government debt problem. Less satisfactory results Engliš achieved at intended reconstruction of the revenue side of the state budget, construction of which - in his theoretical oppinion -- did not correspond well with the export character of Czechoslovakia. Engliš was also heavily engaged in the remedy of the crisis financial situation of the autonomous territorial unions. Among all economic measurements, a demanding, deep and complex tax reform in 1927 (also called Engliš´s reform) was outstanding. The reform was based on the three acts from July 1927 and its goals were manifold: Reduction of the direct taxes´ pressure put on the creation of the capital sources was ment to start a new economic growth. The unification and the codification of the direct taxes system was needed because of the complicated situation in the tax legislation. Hand in hand with the direct taxes reform, a new arrangement of the autonomous territorial unions financial management was necessary. The last goal of the reform was to enable firms evaluate their assets in accordance to a new level of the stabilized currency. The tax reform and an attempt at its assessment are part of the separate (third) chapter.


Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance