Unstable finances of local governments. The JST income law operates contrary to its assumptions
The article discusses the issues surrounding the local government income law in Poland, as highlighted by the Association of Polish Cities.
The article presents concerns regarding the income law for local governments in Poland, stating that it fails to meet its intended goals. Andrzej Porawski, the director of the Association of Polish Cities, emphasizes that the law does not achieve the expected stabilization of local government revenues. Despite the introduction of the new financial system, its implementation has been problematic, which prompts the association to call for legislative improvements.
The Association believes that urgent reforms are necessary to ensure that local governments have stable and adequate funding. They argue that the discrepancies between the intended goals of the law and its actual performance jeopardize the financial health of municipalities and hinder their ability to provide essential services. Additionally, local authorities are voicing their dissatisfaction as they navigate the complexities of the current financing framework, which lacks the promised support.
In response to these challenges, the association has taken a stand and is advocating for discussions on the evaluation of the income regulations for local governments. The National Institute of Local Government is expected to contribute with a report, and further analysis from their internal finance committee is anticipated. The outcome of these developments could lead to significant changes in how local governments in Poland are funded, impacting their operational capabilities in the near future.