DEBT OF COMMUNES IN THE LIGHT OF A NEW INDIVIDUAL DEBT RATIO

The article presents the impact of a new individual debt ratio on the communes' possibilities to incur obligations. It presents also a classification of restrictions used to limit self-government debt in the selected member states of the European Union. Changes caused by a new Act on public finance in the field of debt in the self-government sector were presented. All self-government units at the level of communes in Poland (2,479 entities) were analyzed. It was indicated that the financial position of communes is a key factor determining their possibilities to incur debt. Along with deterioration in the financial position, the number of communes showing the operating surplus was decreasing, which resulted in reduction in individual debt ratios. Upon introducing statutory amendments, the communes, when planning budgets, began to introduce corrective actions which were supposed to lead to increase the potential of incurring credit obligations.