FINANCIAL CONDITION OF REGIONS IN POLAND: 2010 VS. 2019
FINANCIAL CONDITION OF REGIONS IN POLAND: 2010 VS. 2019

Summary/Abstract: Motives: To verify the hypothesis stating that the financial condition of Polish regions has deterioratedover the years due to the growing costs of performing the tasks entrusted to these entities.Aim: To assess the financial condition of regions (voivodships) in Poland and its changes over twodeliberately selected years. The study relied on measures constructed based on the values contained in thebudgets of the voivodships, which reflect their revenue and expenditure potential, as well as their abilityto meet the needs of members of the local government community. The years selected for comparisonwere 2010 (the year in which quantitative limits on liabilities were uniform for all local government unitsin Poland and, at the same time, the last year in which the financial data did not affect the value of theindividual debt ratio [IWZ] of these units, calculated from 2014) and 2019 (the last year in which thedata on local government finances in Poland were not disturbed by, in turn: the effects of the COVID-19pandemic, the introduction of changes to the tax system referred to as the Polish Deal, the increasein inflation, and the effects of the war in Ukraine).Results: Polish regions differ considerably in their financial condition. The measures from the twoinformation areas used in the study indicate that this status has changed in the analysed period.The nature of these changes is not uniform. The financial condition of the regions determined on thebasis of indicators reflecting their income and expenditure potential has improved (especially in theregions located in the southern, western, and central parts of the country), while it has deterioratedwhen determined on the basis of indicators reflecting their ability to meet their needs (especially in thesmaller regions located in eastern and southern Poland).

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