This paper discusses the problem of rational forming of the financing system for local self-government entities. The concept of fiscal federalism as well as the role and importance of own revenues and revenues from the state budget transfers, which are slightly different from other unitary countries, have been referred to in this context. The aim of this paper is to statistically analyze the selected categories of local self-government revenues in Poland with regard to the local self-government total revenue in 2013 and the total expenditure between 1999 and 2013. The study involved methods for the analysis of dynamics of mass phenomena such as, first of all, fixed base indexes, the average rate of change indicator and the correlation and regression coefficients from time series. The correlation and regression coefficients from time series were calculated with the first difference method. The results of study demonstrate a statistically significant role of transfer revenues in the expenditure (with the exception of voivodeships) and a statistically insignificant effect of sensu stricto own revenues in the case of cities with poviat status, poviats and voivodeships. The results reveal that the spending policy of local self-governments in Poland is highly dependent on a specific category of revenue, which is referred to as “other revenue” in the study, as a result of the inflow of EU funds. In the long term, once this specific, incidental source of revenue has been exhausted, the local self-government finance may face serious disruption. Such conclusions may serve as a practical contribution to the creation of an early warning mechanism in the shaping of present and future fiscal policies.
Local governments are a link in the system of public finance. They are a public and legal entity, being autonomous and independent of the state. In the evolution of local governments’ financial independence it is of extreme importance that to some extent they are always dependent on the central government. The literature of the subject provides two extremely different concepts of a community model. One treats it as unit whose rights are modelled after natural rights of an individual. The other assumes that a community should be entitely subordinated to the state, as its founder is the state itself. These approaches are reflected in the attempt to identify limits on financial liabilities that can be assumed by local governments. Their budget deficit is typically financed from refundable sources and their types and the maximal debt are determined in Poland by the public finance act. Lenders attempting to determine a community’s creditworthiness are guided by their own practices. Both in the evaluation of local governments’ creditworthiness and when constructing the rules and limits on their allowable debt it is necessary to allow for the role and specificity of public finance.
The problems of intergovernmental fiscal relations have been recognized for many years. The consequence of this is a wide range of different kinds of transfers from state budget into self-government budgets. The article describes the typology of those grants and suggests same conclusions what grants are appropriate for what objectives.
There have been many changes in the framework of general grant for local-self government in Poland since 01.01.2004. The amount of general grant consists of three parts: the equalizing, the balancing and the educational part for gminas and poviats, and the equalizing, the regional and educational part for voivodcships. The new solutions have been appeared in this framework: - enlargement of the equalization mechanism to protect the economically weaker selfgovernments, - widening the horizontal distribution elements, - the connection between the mechanism of the granting and macro-economical indicators like GNP, the level of unemployment.
W artykule podjęto problematykę decentralizacji fiskalnej w ujęciu teoretycznym oraz konsekwencji jej praktycznej implementacji w Polsce. Rozważania mają charakter przeglądowo-dyskusyjny. Opisano dobre praktyki decentralizacji w ujęciu instytucji międzynarodowych oraz niedoskonałości decentralizacji w świetle badań ankietowych przeprowadzonych wśród polskich radnych. Wyniki rozważań wskazują na lukę decentralizacji w Polsce po stronie lokalnych dochodów podatkowych, czego konsekwencją jest powstawanie i utrwalanie iluzji fiskalnych.
EN
The paper presents problems of fiscal decentralization in theoretical dimension and its consequences in practical implementation in Poland. Considerations are the review and debatable nature. The best practices in fiscal decentralization formulated by international institutions were described and the gap in the process in Poland in the light of questionnaires completed by polish councillors. The conclusions suggest a gap in fiscal decentralisation from the local taxation point of view what results in creation and perpetuation of fiscal illusion.
On the first place, the author describes the main aspects of vertical and horizontal distribution of revenues. Secondly, a reader is acquainted with alternative forms of grants for local self-government. Grant distribution systems have two dimensions: the method of determining the size of the divisible pool and the method of determining the distribution among local governments. The attention is paid to four methods of allocating the divisible pool among eligible units: origin of collection of the tax, formula, total or partial reimbursement of costs, ad hoc decision.
The aim of the article is an evaluation of the financial system in the territorial self-government units in Poland and proposals to change it. The author argue that the sequencing of policies is an important determinant of the success. Little fiscal independence of the local government in Poland (especially above the commune level), the necessity for a property tax reform and efficiency in expenditures are the greatest challenges for the future.
Considering the expanding functions and activities of public authorities the concept of public money has been attracting more and more attention. This category is very complex as the concepts of the public sector and public finance themselves are not explicitly defined. In the theory of finance many equivalents of the term public money can be found, such as public funds, public monetary resources, public spending. Even though the public finance act lists sources of public money, this does not resolve many theoretical and practical problems with subjecting a given type of funds to laws that are applicable to public money. The distinguishing trail of the Polish public finance system is the multiplicity of organizations that spend public money and the declining role of the national budget in its redistribution. 20 K. Mościbrodzka, Obciążenia wydatków publicznych restrukturyzacją schyłkowych gałęzi gospodarki, „Studia Finansowe”, nr 57, Instytut Finansów Wyższej Szkoły Ubezpieczeń i Bankowości, Warszawa 2001, s. 151. At the same time the role of funds and agencies that spend public money has been growing. This phenomenon should be deemed negative as it hinders rational comprehensive (that is holistic) management of public money. Besides, the diversification of organizations that are allowed to manage public money constrains the parliamentary control of its use. On January 1, 2001, the act “admissibility criteria of public assistance for entrepreneurs and its supervising” was put into effect. It aims to enhance rational spending of public money, to set up a public assistance system addressing entrepreneurs and to harmonize Polish and the EU laws with respect to protecting competition in the market sector. The act applies not only to entrepreneurs but also to a large number of public legal persons that offer assistance funded from public money either directly or indirectly.
The aim of this discussion is to present the object and scope of the performance budget of the Łódź Voivodeship against the background of the nature, significance and limitations of performance-based budgeting as an innovative form of public management. The performance indicators for public tasks in the voivodeship budget, their functionality and informative value were evaluated. The performance budget of the governmental voivodeship administration in Poland is based on a set of several functions among which the following ones consume the largest amounts of expenditure: social security and support for the family, health service, public security and public order. Each function was attributed specific tasks which, in turn were divided into subtasks. The objectives of the tasks and subtasks and their performance indicators were formulated. The specific character of the Voivodeship Offices creates additional barriers for the optimal formulation of the public task performance indicators. On the one hand, the Voivodes implement the strategic policy of the government. On the other hand, they have to take into account the character and economic and social characteristics of the region. They also have to cooperate with the voivodeship self-government. The dual character of the public administration at the voivodeship level poses an obstacle to the formulation of an optimal system of tasks and indicators at the regional level.
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