Almost PLN 13.7 billion for local governments

In the era of global inflation caused by Russia’s aggression against Ukraine, ensuring energy security and financial security are our priorities.

The government will allocate almost PLN 13.7 billion for current expenses of local governments, purchases of energy sources and investments that will improve energy efficiency in a given region.

“This bill gives you space in your budget this year and next year. On the one hand, for the implementation of various investments in water, road and school infrastructure. On the other hand, better prospects for securing your current expenses,” the Prime Minister addressed local government officials.

Local governments will have a lot of flexibility in spending the money received. It is an opportunity to invest in new projects and local development.

The bill adopted by the Council of Ministers is awaiting consideration by the Congress and the Senate, and the signature of the President, at the beginning of September. The funds will go to local governments later this year.

The financial support will cover the whole country

The new law guarantees a minimum subsidy for each local government:

• PLN 2.9 million for each municipality;
• PLN 6.1 million for each county; 
• PLN 32.7 million for each province.

“In the years 2022-2025, local governments should spend the equivalent of at least 15% of the funds on investments in energy efficiency improvement. With this mechanism, we want to get out of the crisis, precisely through investments. Thus, we make it possible to reduce energy bills for residents, especially in the long term. We have a great opportunity to bring out beauty from these municipalities for tourists, but also for entrepreneurs and residents, and the investments will lay a foundation for a long-term action,” said Prime Minister Mateusz Morawiecki.

Government programs for the development of the whole country

Support for local initiatives is a key element of cooperation between the central and local governments. These two elements work together for the development of our country. Poland is developing not only through large investments; sustainable development requires also local investments close to people.

For several years now the government has been pursuing a policy supporting development of smaller municipalities and towns. In addition to close cooperation with local governments, there are also large investment programs including the Government’s Fund for Local Investments and the “Polish Governance” Program for Strategic Investments.

Behind them is a real concern for our small homelands – providing them with the means to expand infrastructure and improve their attractiveness.

“These funds are also intended to make it safer for children to go to school on a sidewalk rather on a shoulder of a narrow road. To build bicycle paths, to take care of road safety by building new traffic lights, roundabouts or elements of safe road architecture. It is also investments in water and sewage systems. It is new sports grounds; of course also investments in schools, kindergartens, nurseries and hospitals,” said the Prime Minister in Jasienica Rosielna.

It is also worth noting that local governments initially closed their 2021 budgets with a surplus of PLN 17.5 billion. This is a very good and stable financial situation. It shows the positive effects of the government’s consistent policy.