Abstract
The politicians use some economic instruments in order to influence and get the most potential voters in upcoming elections. Specifically, politicians at local level use mainly public expenditure, especially public investment and expenditure on various projects that are so apparent that they may influence voters in their electoral decision-making. 'the aim of the paper is to examine whether changes in public expenditure of Czech municipalities, specifically in expenditure on non-investment transfers and on public investments, are affected by electoral cycle.
The study analyses expenditure of all Czech municipalities over the period 2003-2013 and uses correlation analysis. Conclusions show that analyzed expenditure is influenced by the political business cycle.