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1 Optimum. Studia Ekonomiczne

1 2010

1 Wyszkowska D.

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EU FUNDS AS A SOURCE OF FINANCING PUBLIC INVESTMENTS (Fundusze unijne jako zródlo finansowania inwestycji komunalnych)

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Wyszkowska D.

Optimum. Studia Ekonomiczne

2010

nr 1(45)

91-103

This article provides an attempt to show the importance of the Union non-repayable funds for financing public investments resulting from statutory obligations of local government entities. An analysis of own local government entities' revenue (including first of all the income which, according to the Act of Local Government Income, falls into the category of own income) indicates that local governments are not able to finance the development, modernization and regeneration investments of particular elements of public infrastructure, especially under conditions of the high capital-intensive nature of their realization. Hence, local government entities are looking for external sources of financing such investments. Yet, to ensure stability of the public finance system, there are statutory limitation within the scope of entity debts. Therefore, local governments are obliged to take advantage of those financial non-repayable sources. A source of this type means assets made available to Poland by the European Union within the scope of structural funds and the Cohesion Fund.