Income potential and investment activity of Eastern Poland’s communities

Abstract

The article aims to evaluate income potential of communities and their level of investment activity. Analysis has been conducted on Eastern Poland’s communities. Their condition was compared with other Polish communities. The study was covers the years 2010–2016. The analysis shows, that Eastern Poland’s communities had relatively lower income potential. Community income per capita in eastern voivodeships were among the lowest in the country. Eastern Poland’s communities also had lower range of financial independence, since their self-revenue values were significantly lower than the national average. Podkarpackie’s communities had the lowest income potential in the eastern region, while Podlaskie Voivodeship’s communities had the highest self-revenue and total income. The level of eastern communities operational surplus indicates, that ability to finance investments is similar to that of the national one. Investment expenditures in the eastern region were at a similar level to that of the national one. Most resources on investment were spent in Podlaskie Voivodeship’s communities. Only in Pomorskie Voivodeship these expenditures were higher. The rate of the operational surplus went up for every community type in the analyzed period. Decline in investment expenditures was noted by all types of communities in every region in years 2010–2016. Biggest decline in the investemnt expenditures was noted in 2016. Reduction in investments was characteristic for the whole municipal sector after 2010.