Living in the red, on eternal credit, with concerns about whether we will have enough until the first of the month. This is not only the reality of many Polish families, but also of many Polish local governments. “During the rule of PiS we were living in poverty” – say the authorities, now the new government is to throw a financial lifeline. Material by Łukasz Wieczorek from the magazine “Poland and the World”.
If cities are waiting for rain today, it's mainly money. Empty treasuries. The situation has become very difficult.
– To say that the situation is difficult is like saying nothing – says the mayor of Kielce, Agata Wojda. – We are struggling with serious financial problems – points out the mayor of Sosnowiec, Arkadiusz Chęciński.
These are just a few examples, because the finances of most cities and towns are in a deplorable state.
– Out of 2,400 municipalities, 1,550 are in a situation of operating deficit, i.e. less amount of income than needs to be spent by the end of the year – says Andrzej Porawski from the Association of Polish Cities.
Not even enough for bills?
If nothing changes, after the holidays cities may not have enough money even to pay their bills.
– Of course, many factors contributed to this. Issues of tax changes in the Polish Deal, price increases, Inflationinternational politics. Today, in the middle of the year, in 2024, we are in a situation where we are looking for funds for virtually every activity of the city – says the mayor of Kielce, Agata Wojda.
– There are simply no more funds – says the mayor of Sosnowiec, Arkadiusz Chęciński. Cities are already wondering what to do, or rather what not to do, to survive until the end of the year.
– All current expenses, we are looking for savings in repairs, in the functioning of communication. One could say, in all things related to the service of our residents – adds Chęciński. Sosnowiec has already given up on many road repairs and the modernization of the municipal swimming pool.
– We are trying to postpone some payments until next year. This will help us close this budget – says the president of Ruda Śląska, Michał Pierończyk.
Kielce is also looking for money. The mayor will propose to the councilors to increase property taxes. She promises savings in the office and counts on the government changing the regulations. It is precisely about the new rules for dividing money for local governments. Easier, more money. – At the expense of the central budget. Therefore, it is not surprising that on the government side, at least in several ministries, there is no enthusiasm for this act – points out Andrzej Porawski.
The government announces changes for local governments
Representatives of large and small cities negotiated with the head of the Ministry of Finance the provisions of the act according to which the government will divide funds for local governments from next year. Opinions were divided, but it was not a hopeless situation. Local government officials reached an agreement with the government representative regarding the provisions of the draft act. It is to be different than the boards PIS.
– To ensure that local government finances are not dependent on changes in PIT taxchanges in the CIT tax to end the policy of cardboard checks once and for all – explains Finance Minister Andrzej Domański.
– There were, as some say, tough players on both sides of these talks and I am glad that we reached an agreement – says Marek Wójcik from the Association of Polish Cities.
Financial lifeline
The act is to be further refined so that, ultimately, from next year, there will never be a shortage of money in the coffers of cities. This year, local governments are also to see a financial lifeline. – In the amount of PLN 10 billion. These funds will naturally be provided in the budget – says Andrzej Domański.
The promise of support was made. Local government officials fell into euphoria. For the first time in eight years.
Main image source: ZDM