THE FINANCIAL SITUATION OF RURAL COMMUNES AND THE LEVEL OF THEIR INCOME IN THE SWIETOKRZYSKIE VOIVODSHIP

Pawel Dziekanski () and Adrian Lipa ()
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Pawel Dziekanski: Jan Kochanowski University in Kielce, Poland
Adrian Lipa: Scientific and Research Consortium, Poland

Baltic Journal of Economic Studies, 2019, vol. 5, issue 4

Abstract: The commune's process of development (its development) takes place in a space that is completely filled by the natural and economic environment with their individual characteristics. Income and expenditure instruments, which are the basis for the operation of local government units and a condition for carrying out the tasks imposed on them, determine the scope and effectiveness of the impact of local government on local and regional development. The aim of the article is to analyse the spatial disproportions of the financial situation in relation to their income using a synthetic measure. The analysis was made in the system of 69 rural communes of the SWIETOKRZYSKIE province. As source material, data from the Regional Accounting Chamber and Local Database of the Central Statistical Office for 2007, 2014, and 2017 were used. Local government can carry out its tasks when it is equipped with stable and efficient sources of own income. Therefore, finance is the basis for the implementation of public tasks and determines the conditions for local economic development. The indicated areas are characterized primarily by traditional agricultural functions. In 2007, the financial standing measure (TOPSIS) ranged from 0.31 to 0.47, in 2017 from 0.30 to 0.51. In 2007, the financial standing (OE) measure ranged from 0.64 to 0.80, in 2017 from 0.56 to 0.80. Areas with a high level of financial standing were located mainly in the central area of the region (Sitkówka-Nowiny, Maslów, Strawczyn, Zagnansk, Solec-Zdrój). The factors determining group membership were favourable location rent, a very good financial situation, and good infrastructure. Group entities are characterized by the highest average share of own revenues, as well as local taxes and fees in total revenues. At the other extreme of the distribution were areas with a low level of financial standing, which can be described as peripheral (Klimontów, Pawlów, Radoszyce, Bieliny, Dwikozy, Iwaniska, Blizyn). This peripherality has a geographical dimension, expressed by its location relative to the centre of the region, as well as an economic and well-developed agricultural function.

Keywords: financial situation; competitiveness; rural communes; synthetic measure (search for similar items in EconPapers)
JEL-codes: B41 C38 H71 H76 P25 R10 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:bal:journl:2256-0742:2017:5:4:2

DOI: 10.30525/2256-0742/2019-5-4-7-16

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