Government programmes for local authorities

Recent years have seen the fight against the COVID-19 pandemic. Now we are facing the consequences of the Russian aggression against Ukraine – inflation and the energy crisis. We do not leave local authorities to fend for themselves in these difficult times. We are providing financial support to small and large municipalities across Poland. City and town authorities can invest in their regions thanks to additional government funding.

Key government programmes supporting local governments:

• The Government Fund for Local Investments provides funds to municipalities, districts, towns and cities across Poland for investments close to the people, such as the construction of crèches, kindergartens or roads. Support came from the COVID-19 Response Fund, with PLN 13.2 billion allocated for this purpose.
• The Government Strategic Investment Programme is a non-refundable subsidy for investments made by municipalities, districts, towns, cities, provinces and their associations throughout the country. There have been five editions to date, under which funding has been awarded to, among others, sites in the area where liquidated state-owned agricultural enterprises (PGRs) operated. The last two editions have targeted the development of industrial zones and Polish spas. A total of PLN 63.4 billion has already been allocated to the programme.
• The Government Road Construction Fund is a resource for road infrastructure development. As of 2019, we have made investments of more than 18,000 km of nearly PLN 13 billion.

"I want to guarantee local governments the continuation and expansion of these great local government programmes that we started," said Prime Minister Mateusz Morawiecki.

Other programmes that benefit local communities include:

• Local Government Roads Fund;
• Toddler+;
• Senior+.

Improving the living conditions of local communities

The funds transferred to local authorities for new investments are chiefly about making life more comfortable for residents. It means new, safe roads, cycle paths or pedestrian crossings. Children can spend time actively on newly built sports grounds. Parents have the opportunity to enrol their children in a renovated crèche.

Making investments in the regions also means new jobs and economic development for our local authorities and companies.

"My great dream, my great desire, is to provide developmental opportunities to all those people who were born in smaller centres to live there if they so desired," stressed the PM.

Additional support for local development

The inflation countries worldwide face due to the Russian aggression against Ukraine also affects the budgets of municipalities, cities and towns. We do not forget to support local governments, so we provided additional funds of PLN 13.7 billion in 2022. This is money that local authorities were able to spend on current needs, the purchase of energy sources, heat and investments that will improve energy efficiency in the region. This is an opportunity for further projects in the area and local development.

In the 2023 Budget Act, we have planned an increase in the general subsidy for local governments.

• It amounts to more than PLN 85 billion.
• Compared to 2022, this is an increase of 18.2%.

 "Today, personal income tax (PIT) that entrepreneurs pay goes to the state budget. We will try to work through this issue with the Ministry of Finance in such a way as to provide local governments with a new additional source of revenue," the Prime Minister announced.

We are also attentive to local needs and the safety of residents. In 2023, we will equip Voluntary Fire Service units with 675 new fire engines. We will allocate more than PLN 300 million for this purpose.