Abstract
Reform of Public Finance in the Czech Republic call for new reform approachess to the budgeting process. For contemporary state of budgeting process in the Czech Republic is typical bid system to the budgetary process, incremental (departmental) budgeting, bruttobudgeting and formal monitoring of public expenditures.
It is necessary to change this state into rational corporate budgeting process, netto-budgeting and performance auditing of public expenditures. We implement F.
Melese's model of gain-sharing, success-sharing and costbased pricing for a government budgeting system and propose a some new ideas for reform of budgeting system in the CR.