Wyrównywanie wydatków gmin - zasadność, przedmiot, zakres i źródła finansowania
Reducing of municipalities expenditures - the justification, subject, scope and sources of financing

Summary/Abstract: The article aims to characterize the selected elements of a financial equalisation mechanism in the context of reducing the differences in expenditure (expenditure needs) of municipalities. The article is a study of the literature on the topic: the rationale of establishing such a mechanism, the subject of equalization expenditures, methods for determining the scope and the expected results of this compensation, as well as sources of financing. The article takes into account the specificity of the municipalities, but the conclusions drawn in it can also be applied to other units of local government. The conclusions are as follows. Reducing expenditure needs of municipalities is more difficult than reducing their income capabilities. Arguments of its followers refer to the principle of horizontal equity and efficiency of the functioning of municipalities. Their opponents do not see the advisability of such a state intervention and emphasize the technical difficulty of measuring expenditure needs. Politicians must decide on: the subject and scope of the compensation and equalization transfers funding sources. Reducing effects are different depending on the source of funding compensatory transfers. It is advisable to finance these transfers from the state budget.

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