Abstract
In 2000, respectively 2003 the Czech Republic finished the first and the second stage of public administration reform, which is closely linked with the issue of public financing, especially the financing of municipalities. The position of municipalities in the decentralization can not be assessed without dealing with the issue of funding.
The main goals of this article are to introduce the basic principles of financing of municipalities in the Czech municipalities, each period of financing. I also analyze the political context of the financing and the main pillars of the financing of municipalities and its problematic aspects (tax revenue, the grant and transfer system, respectively financial contribution to the delegated powers, local taxes, respectively local fees) so that I clarify the attitudes of political actors, key players and stakeholders, way of negotiations and final political cleavage and their characteristics.
Solution strategy of this work is based on the use of a unique case study that aims to provide a deep understanding and causal explanation of the case combined with the qualitative method of case study, specifically the so-called "dimensional sampling" used in own research conducted among the mayors of municipalities in the Czech republic.