Abstract
The article deals with the theory and practice of the Public Sector Savings. Public sector savings are defined as additional resources that were (will be) gained by the public sector as a result of rationalization measures, compared to the originally realistically budgeted resources.
The study analyzes expenditures and revenues for those tasks of central government administration that are delegated to regions in the Czech Republic. Based on the proposed theoretical concept of public sector savings and on the analysis of secondary and primary data, it assesses possibilities for achieving regional savings in delegated central government administration.
The concept of public sector savings is crucial for the analysis of the problems related to effective use of resources. Calculations based on empirical data demonstrate that regional governments have space for internal savings.
The empirical analysis reveals that different regions differ in the degree of coverage of expenditure with revenues (Table 1). Potential savings in each region were determined by means of four simulations.
Savings could be achieved through two measures: staff reduction (see Table 5) and reduction of expenditure per staff member (see Table 3). Calculations for the year 2009 are summarized in Table 7.