Local Debt and the Development of Municipal Infrastructure. The Case of Małopolska

Theoretical background: The contemporary approach to public debt is multi-faceted. Debt incurred finance current expenses assessed differently than financing capital expenditure. This distinction also important from the point of view local authorities as part their budgetary policy. Each decision related incurring a has not only financial consequences, but made in political and image context. It worth noting that research on insufficiently emphasizes its direct impact socio-economic development given government unit, devoting much more attention condition finances. In case first stream research, significant discrepancies should be noted with regard selection optimal indicators for measuring development. Therefore, one agree conditioned by whole group factors dependent independent authorities. article attempts verify several infrastructure partially financed debt. Purpose article: Against this background, subject study identify policy units Poland longer term, determine degree diversification policy, well as, perhaps above all, link processes. order avoid superficial such outlined issues, scope observation was limited communes Małopolska Voivodeship. Such an it possible take into account period surveyed (2010–2020). Research methods: Out total number 179 existing Małopolska, 11 urban (the due number), 20 rural urban-rural were randomly selected study. basic criterion assessing municipalities relation ratio per capita revenue capita. indicator allows level burden communes’ revenue. Next, variables characterizing commune examined, as: a) own capita, b) investment expenditure c) non-recoverable property (mainly European Union), d) municipal commune, affecting quality life commune’s inhabitants. Progress improves conditions conducting business activity private enterprises, including location new entities, which may result increase used multiple correlation coefficient, value calculated each distinguished cluster communes. obtained results allowed assess how indebtedness influenced these units. Main findings: conducted analysis restrictiveness carried out analyzed Małopolska. coefficient between explanatory (investment non-refundable variable capita) proves fairly strong relationship variables. On other hand, low restrictive budget (with high ratio), indicated generally stronger disciplined lower level). low-restrictive (high debt).