Local government indebtedness on the rise

In 2002, local government debts topped zl. 15 billion, 50% of which consists of loans. On the basis of budget reports from specific administrative units, the Finance Ministry has drawn up a report on gmina, town, county and voievoidship liabilities, according to which, their debts are 25% higher than in 2001. Fortunately, this does not pose an imminent threat to the administrative units. The report states that the indebted local governments need to be monitored more closely. From unofficial comments emanating from Finance Ministry members, it transpires that local government indebtedness will drastically increase due to the granting of EU funds that will initially necessitate the provision of financial resources for the realization of investments. (Rzeczpospolita, p. B7) A.C.