Local Government Unit Budgets in Poland, 1999-2023

In 1999, additional levels of local government were established in Poland: the county (Polish: powiat) and the voivodship (Polish: województwo). The year 2024 marks the 25th anniversary of this reform. Therefore, the study aims to examine the formation of the Local Government Units finances and to identify the factors influencing them. Budgets of these units in the years 1999–2023 were analyzed. The study reveals that the revenue and expenditure potential of municipalities, including cities with the county rights, is considerably higher than that of counties and voivodships. However, among all levels of local government, voivodships experienced the highest income growth between 1999 and 2023. Local government revenues and expenditures were influenced by legislative changes, economic conditions, and the uneven distribution of EU funds. In recent years, budgets have also been affected by shocks such as a pandemic, the war in Ukraine, and high inflation. Comparing local government revenues to GDP indicates the evolving role of local government within the state. The recent downward trend in this ratio for communes (Polish: gmina), cities with county rights, and counties is unfavourable.