Prague has enough money, but it is not possible to invest
Prague as a whole is a municipality and a region at the same time. Its revenues were 77.76 billion and its expenditures 70.31 billion CZK. The total investment reached 12.4 billion.
Prague, as a municipality, also admits that the fulfillment of capital expenditures was the worst against the approved budget last year. The metropolis drew only half (50.34 percent) of the investments originally presented. Although the budget was adjusted during the year, the drawdown of investments eventually stopped at only 69 percent of the allocations.
The total amount invested increased slightly year-on-year, but it is still a sad result. Compared to 2012, for example, the invested 7.8 billion is half the amount. In 2009, the city was able to spend over 19 billion on investments.
Comparison of drawing capital expenditures of the capital city of Prague (in billions of crowns) | |||||
year | approved budget | adjusted budget | drawn | % of approved budget used | % of adjusted budget used |
2000 | 7.5 | 9.1 | 8.7 | 116.24 | 95.87 |
2001 | 15.7 | 14.9 | 13.5 | 85.95 | 90.92 |
2002 | 9.8 | 13.5 | 12.8 | 129.77 | 94.81 |
2003 | 7.0 | 14.8 | 13.8 | 196.99 | 93.32 |
2004 | 14.3 | 16.8 | 15.5 | 108.35 | 92.48 |
2005 | 12.5 | 14.8 | 14.2 | 113.14 | 95.67 |
2006 | 13.2 | 15.4 | 14.0 | 106.28 | 91.16 |
2007 | 14.7 | 19.7 | 16.9 | 114.85 | 86.07 |
2008 | 16.5 | 16.9 | 14.9 | 90.17 | 87.78 |
2009 | 18.2 | 20.7 | 19.9 | 104.34 | 91.57 |
2010 | 15.4 | 15.7 | 15.1 | 98.19 | 96.11 |
2011 | 11.2 | 16.0 | 15.5 | 138.23 | 97.31 |
2012 | 10.1 | 19.0 | 14.2 | 139.89 | 74.73 |
2013 | 9.2 | 14.0 | 10.0 | 108.72 | 71.61 |
2014 | 10.0 | 17.6 | 15.9 | 158.42 | 90.29 |
2015 | 11.1 | 8.6 | 6.7 | 60.55 | 77.85 |
2016 | 12.7 | 11.2 | 7.6 | 60.27 | 68.23 |
2017 | 15.6 | 11.4 | 7.8 | 50.34 | 68.79 |
source: Praha.eu |
Somewhat paradoxically, there is a comment that justifies why it was not possible to meet the planned budget.
Investments are said to be hampered by laws and their own controls
Prague points to the “increase in legislative requirements” and the adjustment of the rules of tenders, which postpone the start of construction for at least a few months.
“This applies to one-year and newly launched events, when the preparation of the construction is being extended or there are problems, for example, with the purchase of land,” the explanatory memorandum states. The projects under construction then pay extra for the control of previously concluded contracts. Also at these events, Prague allows delays of several months and postponement to the next year.
A practically identical justification why it was not possible to make the planned investment also appears in the financial results of Prague from the previous two years. Nevertheless, interesting budgets were created, anticipating considerable investments.
The subway is still not being built
Due to problems with the purchase of land, it is not possible, for example, to build the D metro line, which is to be one of the largest investments worth tens of billions of crowns.
The city has set aside over 800 million in its final part of the final budget, but construction has still not begun, so this investment was part of the budget adjustment. The construction has still not started and only preparatory work and land purchase are underway.