Do changes in local government's income in Poland lead to the country's sustainable development?

Abstract

Purpose. The main aim of this paper is to delve into the alterations in local government revenues in Poland and their subsequent impact on the nation’s sustainable development. Methodology. Methods of literature analysis and statistical materials analysis are employed. The scope of the study encompasses the dynamics and structure of the state budget, local government budgets, and the city of Kalisz’s budget from 2015 to 2022. Results. It is concluded that an increase in the role of subsidies in local government budgets may signify a rise in the state’s influence on determining the directions of expenditures from local budgets. This could lead to a decrease in the degree of sustainable development in public finances and regional and city development. Theoretical contribution. This paper adds value to the field of public finance by providing a detailed analysis of the changes in local government revenues and their impact on sustainable development. It also offers insights into the relationship between state and local government budgets. Practical implications. The findings of this paper have practical implications for policymakers and local government officials. They underscore the need for a balanced approach to budgeting that considers both the needs of local governments and the goal of sustainable development.