Investment activity of local government units in the context of finance management

Abstract

Purpose – The article aims to present the specific characteristics of finance management in local government units in the context of implementation of investments by these entities. These reflections are envisaged with consideration given to the analysis of investment activity of local government units in Poland in the years 2007–2015. Design/methodology/approach – Due to the multi-aspect research area a variety of research methods was used with a view to achieving the assumed objective. The research procedure involved non-reactive research methods, the method of analysis of official documents as well as the historical and comparative method. Findings – The conducted analyses reveal specific characteristics of investment activity pursued by local government units and their special role from the perspective of finance management of these entities. The collected data testifies engagement of particular categories of local government units in Poland in the years 2007–2015 in the execution of capital expenditure financing the investments. Originality/value – The analysis of the researched issue confirms that finance management is of considerable importance in local government units. It is especially significant in the context of substantial engagement in the execution of the investment. Investment activity of local government units depends on financial standing of these entities, which should be affected by efficient and effective management. The analysis of the structure of budget expenditure incurred by particular categories of local government units in Poland in the years 2007–2015 enables observation of differentiation in this respect and constitutes the grounds for evaluation of the intended purpose of expended funds.