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FINANCIAL INDEPENDENCE OF SMALL COMMUNES IN POLAND’S LUBELSKIE VOIVODESHIP: IMPORTANCE FOR FINANCIAL STABILITY
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The aim of the study was to determine the level of financial independence of 81 small communes of Poland’s Lubelskie Voivodship (up to 5,000 inhabitants per commune) and to assess its significance for their financial stability. The following methods were used: literature analysis, ratio analysis and diagnostic survey. Financial data from 2017-2021 was adopted for the analysis. 69 heads of communes participated in the conducted survey. It was established that in the opinion of these leaders, income potential and financial independence are important factors affecting the financial stability of small communes, and their low level poses a threat to this stability. Three ratios were used to assess financial independence. The analyses showed that small communes were characterized by a low level of income independence and a high dependence on revenues transferred from the state budget, which is evident in the value of the expenditure independence ratio achieved.
Warsaw University of Life Sciences - SGGW Press
Title: FINANCIAL INDEPENDENCE OF SMALL COMMUNES IN POLAND’S LUBELSKIE VOIVODESHIP: IMPORTANCE FOR FINANCIAL STABILITY
Description:
The aim of the study was to determine the level of financial independence of 81 small communes of Poland’s Lubelskie Voivodship (up to 5,000 inhabitants per commune) and to assess its significance for their financial stability.
The following methods were used: literature analysis, ratio analysis and diagnostic survey.
Financial data from 2017-2021 was adopted for the analysis.
69 heads of communes participated in the conducted survey.
It was established that in the opinion of these leaders, income potential and financial independence are important factors affecting the financial stability of small communes, and their low level poses a threat to this stability.
Three ratios were used to assess financial independence.
The analyses showed that small communes were characterized by a low level of income independence and a high dependence on revenues transferred from the state budget, which is evident in the value of the expenditure independence ratio achieved.
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