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Life is stressful, with constant need for credit and worry about whether it will be enough to complete the first task. This is the reality not only for many Polish families, but also for many Polish local governments, the authorities say. “We fell into poverty during the Law and Justice government,” and now the new government is expected to provide a financial lifeline. Material from Łukasz Wieczorek of the magazine “Poland and the World”.
If the city waits for rain today, it’s mainly for money. The cash registers are empty. The situation becomes very difficult.
– To say that the situation is difficult is to say nothing, says the mayor of Kielce, Agata Wojda. – We are struggling with serious financial problems – notes the mayor of Sosnowiec, Arkadiusz Chęciński.
These are just a few examples as most towns are in dire financial shape.
– Andrzej Porawski of the Polish Association of Municipalities said that 1,550 of the 2,400 communes were running in deficit, meaning that revenues were lower than needed spending at the end of the year.
Is it enough to pay the bills?
If nothing changes, the city may not have enough money to pay its bills after the holidays.
– Of course, there are many factors that contribute to this situation. The tax changes in the Polish order, price increases, inflationInternational Politics. Today, in mid-2024, we are looking for funding for almost all activities in the city – says Kielce Mayor Agata Wojda.
– The funds simply no longer exist, according to the mayor of Sosnowiec, Arkadiusz Chęciński. Municipalities are already thinking about what to do, or rather what not to do, in order to survive until the end of the year.
– With all current expenses, we are looking for savings in renovation and communications. You can say, in everything that is related to serving our residents – adds Chęciński. Sosnowiec has already abandoned many road renovations and modernization of the municipal swimming pool.
– We are trying to postpone some payments until next year. This will help us complete the budget, says Michał Pierończyk, president of Ruda Śląska.
Kielce is also looking for funds. The president will propose to MPs an increase in real estate taxes. He promises savings in office and wants the government to change the regulations. This is exactly the new rules for the allocation of funds for local governments. The simpler, the more money. – At the expense of the central budget. Therefore, it is not surprising that the government (at least in several ministries) is not enthusiastic about this bill, Andrzej Polaski noted.
Government announces changes to local government
Representatives of large and small cities negotiated with the head of the Ministry of Finance on the terms of the bill, under which the government will allocate funds to local governments starting next year. Although opinions differ, the situation is not hopeless. Local government officials and government representatives reached an agreement on the terms of the draft bill. It should be different from the management committee Law and Justice Party.
– Make local government finances less dependent on changes in… Personal income taxFinance Minister Andrzej Domański explained that changes in corporate income tax will put an end to the cardboard check policy once and for all.
– As some people said, there were tough players on both sides of these negotiations, I am glad that we reached an agreement – said Marek Wójcik of the Association of Polish Cities.
Financial lifeline
The bill will be further improved and, starting next year, municipal coffers will no longer be short of money. This year, local governments are also expected to receive a financial lifeline. – In the amount of PLN 10 billion. Andrzej Domański said that these funds will naturally be provided in the budget.
Promises of support have been dropped. Local government officials are ecstatic. For the first time in eight years.
Main image source: Zero DM
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