Debt as a factor of local development of reactivated local authorities

Abstract

The currently binding legal regulations in Poland have created a situation in which the debt of local authorities that has been dynamically growing over the recent years is now an instrument which serves the execution of investments which, at least as intended, are to enhance the development of local communities. Upon Poland joining the structures of the European Union, it was the local governments which became the biggest public investor; thus contributing not only to the development of respective regions but also the domestic economy as a whole. Even though the repayable liabilities facilitate an increase in the speed of the development, their negative consequences can make the debt an obstacle to local development. Local development involves the execution of respective undertakings, most frequently investments. It is extremely important to
make the process of creating the local government comprehensive and to make it consider all the aspects of the operation of a given local government. The development of each local government should be sustainable and permanent, thanks to which the needs of today’s generation can be satisfied at no expense to the future generations.