Should we differentiate systems of own revenues in rural and urban local self-governments' budgets? Example from Lower Silesian voivodeship

Jarosław Olejniczak


The main purpose of this article is a presentation, analysis and comparison of own revenues (ORvn) system in all rural (78) and urban(32) of local self-governments (LSG) from Lower Silesian voivodeship in changing economic conditions during 2006-2014 period. The aim of this article is also to attempt to show how a present system of LSG ORvn in these two types of local self-governments have responded to crisis. LSG budgets need relatively stable revenues to sustain their responsibilities so LSG revenues should be also fairly resistant to crisis and should not overreact to economic fluctuations. The analysis of accessible financial budget data proved that the most vital revenues in the case of investigated types of municipalities are shares from PIT, CIT, real estate tax, tax on transportation vehicles, agricultural and forest taxes and revenues from LSG property. The estimates come from financial reports from The Regional Chamber of Audit. To compare the meaning and importance of these revenues a comparative analysis has been carried out. Maximum, minimum and medians estimates, but also the first and the third quartiles separately for all urban and all rural LSG in 2006-2014 have been taken into consideration. There are presented among others: a share of ORvn in total revenues (TRvn) in the consequent years, changes in TRvn in urban and rural LSG, differences between growth rate of own-median and total-median LSG revenues and other main revenues share in ORvn of LSG. Shares of LSG ORvn in TRvn were changing more in urban LSG than in rural ones. The average growth of it was slower than the average growth of TRvn 2008–2010 mostly in urban LSG. The main reason of it was a big share in TRvn of PIT and CIT shares. This suggests that income taxes are not a stable and efficient source of ORvn during a crisis time. Introduction or acquisition of new ORvn is problematic because: (i) there is a relatively low acceptance of sharing other than direct taxes between central and local government, (ii) there is no space for new sources of revenue for local government, (iii) tax base of different types of LSG is also different between each type.
Author Jarosław Olejniczak (ES / DF)
Jarosław Olejniczak,,
- Department of Finance
Publication size in sheets0.5
Book Smutka Lubos, Rezbova Helena (eds.): Global Agribusiness and the Rural Economy. Proceedings of the 24th International Scientific Conference, 2015, Czech University of Life Science Prague. Faculty of Economics and Management, ISBN 978-80-213-2581-4, 552 p.
Keywords in Englishlocal government, own revenues, rural municipalities
Languageen angielski
Score (nominal)15
ScoreMinisterial score = 15.0, 20-08-2019, BookChapterMatConfByConferenceseries
Ministerial score (2013-2016) = 15.0, 20-08-2019, BookChapterMatConfByConferenceseries
Publication indicators WoS Citations = 2
Citation count*4 (2020-07-10)
Share Share

Get link to the record

* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.