The operating surplus of local governments, i.e. the difference between their current income and expenditure after the first half of 2022, amounted to nearly PLN 20.5 billion, announced the Ministry of Finance.

The Ministry of Finance emphasises that the debt of local government units has also decreased. At the end of Q2 2022, it amounted to PLN 87 billion 403 million which means a decrease of PLN 3 billion 720 million compared to Q4 2021.
In addition to the incoming revenue in the current year, local governments can dispose of residual funds from previous years in the amount of almost PLN 52.1 billion.

The local governments are planning to use almost PLN 37.6 billion of the above amount, in 2022. Thus, they still have at their disposal an unused amount of approximately PLN 14.5 billion, which can be allocated to expenditure or debt repayment.

“The situation of local government units after the first half of 2022 remains stable, and the execution of local government budgets is going according to the assumed plans. It is also worth noting that the debt of local government units has fallen this year”, assessed Deputy Finance Minister Sebastian Skuza.

According to the reports of local self-governments on the execution of budgets for the first half of 2022, total revenues in local self-governments at the end of the second quarter of 2022 totalled over PLN 170.8 billion. Executed current revenues in local government units at the end of Q2 2022 totalled over PLN 160.3 billion.

Local governments made a budget surplus of over PLN 14.4 billion at the end of Q2 2022. They also made an operating surplus of nearly PLN 20.5 billion.

As emphasised by the Ministry of Finance, the positive results of local government budgets are a result of the good economic situation and the solutions introduced earlier to strengthen and stabilise their finances. The funds transferred to local governments from the state budget at the end of 2021 are also significant, which now constitute an effective financial buffer allowing expenses to be matched with revenues without major problems.

Adrian Andrzejewski