Abstract

Purpose – The aim of the article is to identify the scope and directions of changes in the situation of local government budgets and their links with macroeconomic factors, the occurrence of which is associated with the consequences caused by crisis phenomena, as well as to determine the disparity of investment expenditures in local systems in the context of the investment capacity of local government units. Research method – The study applied the method of critical analysis of the literature on the subject, as well as the method of comparative analysis using measures of statistical description in the scope of empirical data collected and own calculations. Results – The consequences of the pandemic crisis phenomena and adverse trends in macroeconomic factors affect the stability of the budgetary economy. It was observed that until 2021, the level of investment expenditures did not decrease, however, negative changes in the structure of expenditure are noticeable in many local government units. Originality /value /implications /recommendations – The analysis of the economic environment indicate the risk of intensification of factors destabilising economic processes. It is necessary to undertake regular analyses with a view to counteracting the further negative changes, in particular in the field of the revenue stability of territorial self-government units, as well as the elimination of excessive spatial diversification of investment capacities on the scale of Poland.

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