healthy local government financial system lays the foundation for the ability of local government units (LGUs) to carry out public tasks at the current qualitative and quantitative level and to meet their obligations in the short and long term. A healthy financial system of local government is a system that is adequate, stable, unified, consistent, transparent, diversified, counter-cyclical, guarantees the financial independence...

The article analyses the system of specific grants in local governments in Poland. First, main revenue sources of local self-governments are presented. Their presentation is based upon the consideration of one of the basic important principles in democratic states today, i.e. decentralization. The text then, in more details, describes specific grants with respect to the European Charter of Local Self-Government. Subsequently, the...

The article will discuss functions that should pursue general grants. One of them is revenue equalization. To achieve it after applying the mechanism of subsidising revenues should be reduced. In addition, to be completed, the size of the support should be inversely proportional to achieved own revenues. Besides the theoretical analysis, which will present the general grants structure and the ability of fulfilling revenue equalisation...