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Municipalities Demand Changes to Finance Bill

ECONOMYMunicipalities Demand Changes to Finance Bill

Eight organizations representing various levels of territorial self-government units (JST) have proposed changes to the draft of the new law on local government revenues, which the Ministry of Finance presented a few weeks ago. Although the ministry consulted the new regulations with the local government side during the work on the project, it raised its objections to the solutions presented. Some municipalities are at risk of losing their financial liquidity in the third quarter, while others do not have the funds for the own contribution necessary to obtain subsidies from the Union. According to the vice-president of the Association of Rural Municipalities, education is struggling with the biggest problems in financing.

“Many municipalities report to us financial problems with current expenses and say that they do not have 100% balanced funds for the functioning of education, but also for other current expenses: energy, heating of buildings, salaries. In the years 2021-2023, the government side supplied us in the second half of the year, mostly in the fourth quarter, with additional shares in PIT tax or additional subsidy. Like all local government corporations, we expect such support from the state this year,” says Jacek Brygman, mayor of Cekcyn, vice-president of the Association of Rural Municipalities.

During the June general assembly, the association estimated that approximately 15-20 billion PLN of support will be needed.

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