Military and Public Expenditures and Fiscal Policy of the CR in the 90s

The purpose of the paper is to explain some of the connections among military and public spendings and its influence on forming fiscal policy in the 90s. Security doctrines influence national military concepts, level of defence expenditures, and developments of other spheres of public spending. Defence and other items are parts of spending budget, constituting government's fiscal policy, and vice versa; the economy in respective countries influences defence policy. The author treats the question how Czech expansive fiscal policy reached the limits of its growth, how it was reflected in defence policy. The key military reform proved to be inevitable; the reform of armed forces demanded the reform of civil administration. He comes to the conclusion that in our country, government spendings are not a stimulus of economy growth, even not in a short time period, that it is economy growth that determines public spendings, so does the defence budget.