The Evolution of Districts’ Public Debt and the Budgetary Deficit in the Light of the Act on Debt Ratio of Local Government Units, in Force since 2014
The Evolution of Districts’ Public Debt and the Budgetary Deficit in the Light of the Act on Debt Ratio of Local Government Units, in Force since 2014

Summary/Abstract: The Public Finance Act introduced the debt ratio of the local government units,applying from 2014. It is an indicator with many shortcomings, impeding significantlythe implementation of the external investments in local government units.Another restraint is the requirement of the operating surplus which in fact, preventsthe constitutive organs of the local authorities from adopting of the budget in whichthe planned current expenditure is higher than the planned current revenue. In consequence,it forces the local authorities to reduction in expenditure and in manycases, to introduction of the recovery programme. The research covered the districtgovernment units of the West Pomeranian Voivodeship and its aim was to comparethe debt ratio and the possibility to influence the debt repayment capacity.

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