The Debt Level of Communes in Lubelskie Voivodship Analysis in Years 2010-2015

Financial resources owned by local government units in Poland to implement assigned tasks are limited. Due to constantly growing demand for the financial resources, local government units need to attentively analyse their budgets and assess the risk of undertaken investments. Having access to up-to-date and real information about local government units’ liabilities and debt amount is essential to execute this tasks. It is extremely important due to the fact, that local government units’ debt is a part of the national public debt. Commune, as a basic local government unit in Poland, received the biggest, unclosed list of tasks, which aim to meet the needs of the commune’s inhabitants. There are decisions made about debt limitation to improve the financial safety management of local government units. The article presents general rules on the polish local government units’ debt development. There are acceptable debt limits valid until 2013 described, as well as a new method of limiting debt - the individual debt ratio, which is in force since 2014.In the article there are also debt management methods and possible recovery programs for local government units presented. The purpose of the article is to analyse the communes from lubelskie voivodship in Poland liabilities in 2010-2015. All communes from the lubelskie voivodship were analysed. The article analyses the formation of income, expenditures and budget deficit/surplus. There is debt dynamics and the debt structure in the analysed period presented, as well as communes’ debt to general incomes indicator.