The Scope and Direction of Changes in the Revenues of Local Government Units in Poland in the New Act of October 1, 2024

Abstract

The purpose of the article. The purpose of the study is to present the basic assumptions adopted in the new law on the revenues of local government units and changes in the financial situation of different types of local government units in Poland.

Methodology. The article is of an overview and organizational nature, and the adopted legislation, the draft law with introductory documents and the opinions of local government organizations have been used to achieve the intended purpose.

Results of the research. The adoption of a new law on local government revenues is aimed at reforming the financial system to restore stability and transparency. It is also a response to the changing socio-economic and political situation. Under the law, all local government units, but not all equally, will receive increased funding streams for public functions, mainly based on their own revenues. The level of local government revenue has been freed from central government decisions on fiscal policy. The need to support local governments in the area of development and ecology has been recognized by defining development and ecology needs and granting them an appropriate financial component. A complete novelty is the separation of a city with county rights from the local government structure. Some of the solutions introduced deserve recognition. It should not be forgotten, however, that there are also those that will need to be adapted. These include the "determinants" adopted for the various algorithms used to determine the expenditure needs of each LGU. Only practice will show whether they have been correctly estimated and take into account the right variables. Building a stable system of financing for local government units will require both the government and local government sides to work together in many ways, with mutual understanding and partnership.