The local government sector plays an important role in the Polish system of public finance. Local financial economy has certain specific features and is a tool for resource allocation in a market economy. The role of local government sector in the public finance system can be evaluated by analysing its share in the raising and spending of public resources. In 2010, there was a decrease in the share of local government revenue and expenditure in total government revenue and expenditure, as well as in relation to the GDP.
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