Legal and financial conditions of the functioning of metropolitan cities in Poland in a turbulent environment – experiences after the COVID-19 pandemic
Katarzyna Maj-Serwatka
Uniwersytet Ekonomiczny w Krakowiehttps://orcid.org/0000-0003-0312-3359
Anna Wichowska
Uniwersytet Warmińsko-Mazurski w Olsztynie UWMhttps://orcid.org/0000-0003-2862-4424
Abstract
The COVID-19 pandemic and its effects in the form of lockdown and significant changes in the legal conditions of the functioning of local government units were important factors affecting the financial management of local government in 2020–2021. The scale and type of effects varied depending on the level of self-government and the type of municipalities. In the case of large cities, the effects of sudden economic and social crises are even more severe as cities have relatively higher own revenues and are characterized by a num-
ber of economic connections with the public and private sectors. Hence, the research goal of the study was to identify legal changes in the field of financing local government units, with particular emphasis on the period of the COVID-19 pandemic, and to assess the impact of the COVID-19 pandemic on the financial situation of the largest cities in Poland belonging to the Union of Polish Metropolises. To achieve the goals defined in this way, first, an analysis of changes in legal regulations and an analysis of selected financial indicators for 12 metropolitan cities in Poland in 2019–2021 were carried out, and then an assessment of the diversity of the effects of the pandemic in the study group. The results of the research constitute a complementation of the research
gap on the effects of the COVID-19 pandemic on local government finance. They concern not only about the impact of the pandemic on the financial situation of metropolises in Poland but also include an assessment of the impact
of the most important changes in legal regulations on the financial situation of local government units. The analysis of changes in legal regulations allows us to conclude that their effects have an impact not only on the principles of financial management but above all on the level and structure of local govern-
ment units’ revenues (especially in metropolitan cities). These regulations
limited financial independence by reducing the importance of own revenues, while increasing the role of external transfers. As a result of the pandemic, the financial situation of metropolitan cities in Poland has significantly deteriorated. It should be noted, however, that the effects of the pandemic and legal changes, even in the case of a relatively homogeneous group of metropolitan cities, were very diverse. Lublin, Cracow and Warsaw were the most affected.
Keywords:
financial law, financial management of local government units, revenues of local go- vernment units, COVID-19 pandemic, financial crisisReferences
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