Abstract
The individual debt ratio for local government units was introduced in 2014 as an instrument of financial security of local government units and also takes into account the individual capacity of each local government unit to settle its liabilities. Nevertheless, its construction has come in for criticism, and the Ministry of Finance has announces modifications. This article identifies problems related to the indebtedness of local government units in Poland after 2013. The issues to be discussed include fiscal rules regarding local governments, the effectiveness of functioning legal solutions in the scope of debt reduction and the absorption of EU funds.
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