Local Government Financial Condition – Small Towns Versus Large Cities in Poland

In: Lex localis: journal of local self-government, Band 18, Heft 4, S. 807-834

Abstract

The development of local government units is determined by many factors. The most important is the financial condition, which determines the possibilities of the effective implementation of tasks, both current and as an investment. In the face of an unstable macroeconomic environment, as well as growing expectations of residents regarding the improvement of living standards, local government finance management takes place under conditions of strong pressure and great uncertainty. Therefore, a rational budget policy is a prerequisite for achieving the approved development goals. It should be based on greater control of the performance and discipline in the use of budget funds. The purpose of this article is to assess and compare the financial situation of small towns and large cities in Poland in 2012-2018. The study used budget indicators in the areas of revenues, operating surplus and indebtedness. The study made it possible to draw conclusions regarding the development opportunities of Polish cities.