Financial resources of local government units in respect of the financial perspective of the European Union
Financial resources of local government units in respect of the financial perspective of the European Union

Author(s): Ewa Gubernat
Subject(s): Public Administration, Economic history, Economic policy, Transformation Period (1990 - 2010), Present Times (2010 - today), EU-Accession / EU-DEvelopment
Published by: Masarykova univerzita nakladatelství
Keywords: local government unit; absorption capacity of local government unit;
Summary/Abstract: Finance is the basis for the implementation of public tasks and determines the conditions of local economic development. One of the key issues relevant for local and regional development is the local government unit’s capacity in investment activities. They are the most important category of beneficiaries of EU funds. Based on literature review, I have posed the following research hypothesis: there are four key indicators that determine the absorption capacity of the local government units as a beneficiary of EU funds. I have also analysed the relationship between total budget revenue, budget expenditure, results achieved and debt. I have found that: absorption capacity is closely correlated between the financial condition and the state of local finances, what means that changing in the financial system of local governments units does not affect the absorption capacity and can significantly reduce it. Data were obtained from the GUS Local Data Bank and studies by the Ministry of Finance, as well as data from the National Regional Councils of the Accounting Chamber, covering years 2007-2013.

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