METHODS FOR IMPROVING THE EFFECTIVENESS OF THE FINANCIAL MANAGEMENT OF LOCAL GOVERNMENT UNITS IN POLAND

Abstract

The issue of public sector management, especially management of public finance, identifies as extremely important in both theoretical and practical areas. Within the context of social and economic change, its meaning becomes crucial to the smooth and efficient functioning of public institutions including local government units. The search for optimal solutions in the sphere of local governments’ financial management and the implementation of new tools causes an increase in the efficiency of financial management at local and central levels, an increase in the rational use of public resources’ management, a transparency of expenditures, and above all, an improvement in the efficiency of public tasks that the state and local governments carry out for their citizens. The aim of this paper is to present three tools that have been introduced in recent years with the aim to increase the efficiency of public financial management. They are the performance budget, the individual debt index, and the long-term financial forecast of the LGU. Also, selected survey results are presented that show the opinion of local authorities on the implementation and usefulness of the tools mentioned.