The Financial Situation of Rural Communes and the Level of Their Income in the Świętokrzyskie Voivodship

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 Świętokrzyskie 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, Masłów, Strawczyn, Zagnańsk, 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, Pawłów, Radoszyce, Bieliny, Dwikozy, Iwaniska, Bliżyn). 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.

The application of a synthetic measure in the assessment of the financial condition of LGUs in Poland using the TOPSIS method approach

“…This statement is somewhat contradictory to the results of the research conducted in this article, but this may be due to the fact that the author only analyzed the financial independence of Polish metropolises, and this resulted in an interpretation detached from other types of municipalities. P. Dziekański & A. Lipa (2019) used the communes of the Holy Cross Voivodeship in their research. They drew attention to the importance of stimulus for financial stability, in particular, a location near the capital of the voivodeship, mining industry, mineral resources, developed agritourism and conversely, destimulants -a peripheral location, traditional agricultural functions of the commune.…”

“…Kozera, R. Głowicka-Wołoszyn & F. Wysocki (2016) and A. Kozera (2017) similarly to A. Bieniasz & Z. Gołoś, using the described method, have evaluated the financial situation of rural communes in the Greater Poland Voivodeship, and R. Głowicka-Wołoszyn (2016) applied it to identify spatial effects in assessing the financial condition of communes in the Greater Poland Voivodeship. Two other authors, P. Dziekański & A. Lipa (2019), using the TOPSIS method, examined the financial situation of rural communes and the level of their income in the Holy Cross voivodeship. In another work by P. Dziekański & P. Wiraszek (2018), the income situation of cities with poviat rights located in regions of Eastern Poland was analyzed with the use of the TOPSIS methodology.…”