Abstract
The aim of this article is to examine the funding of Czech municipalities in the context of function and discretion, as defined by the typology of Goldsmith and Page. The first part assesses the Czech municipalities in terms of criteria for the function and discretion.
This text focuses on providing services to citizens and the powers and duties that municipalities have. This is closely connected with discretion in performing these functions, the essential criterion is financial autonomy.
The second part focuses on the current form of local government financing in the Czech Republic. The article analyses the revenue of Czech municipalities under current legislation, at the same time contrasting with the new legislation proposed by the government of Petr Necas (since 2010).
The substantive point is establishment of the financial manager of the municipality and municipal debt, which may threaten the autonomy of local Czech government.