The financial condition of selected territorial governments in the Malopolska Voivodship within the new EU financial Framework

Abstract

The purpose of the article is to evaluate the financial condition of selected territorial governments in the Malopolska Voivodship within the new EU financial framework for the 2014–2020 period. The global economic crisis has affected not only financial markets but also the policy and development strategies of local and territorial authorities. Changes have occurred in the approach to strategic objectives, which are now focused on regions and aim to stimulate endogenous growth potentials. New plans and strategies have already been drafted on national and regional levels, but their implementation, as well as the achievement of those goals laid down in the „Europe 2020” strategy, will crucially depend on the absorption capabilities of territorial governments. The research hypothesis of the article concerns the need to restructure the revenue system of territorial governments and further decentralize public finances in order to stimulate regional endogenous growth potentials. In order to verify it, financial indicators for selected territorial governments in the 2010–2014 period have been analysed. The findings show that there are positive trends underway in the budget policies of the analysed governments, but their revenue are still inadequate and their total growth potential remains low.