Budget’s revenue of local-government units

From Encyklopedia Administracji Publicznej

BUDGET’S REVENUE OF LOCAL-GOVERNMENT UNITS – public funds included in the budget of a local-government unit from the sale of securities, from the privatization of property of local-government units, from repayment of loans and credits granted from public funds, from received loans and credits and from other financial operations. In addition to budget incomes, they are the main source of public funds of local-government units and budget earnings. The basic economic criterion of distinguishing b.r. is their refundable character. This criterion is met by all categories of revenues listed in the Public Finance Act, with the exception of revenues from the privatization of assets of local-government units. The justification for the inclusion in the b.r., and not in the public income, of the earnings from privatization results from their extraordinary character. These earnings are not a consequence of ordinary, normal functioning of local-government units. Nevertheless, in this case, the classification of the proceeds from privatization to revenues does not result from their economic nature, which would indicate their qualification as income, not revenue, but it is a political decision. B.r. are therefore an “extraordinary” sources of public funds (earnings) of local-government units. B.r. are intended for financing the borrowing needs of the budget of local-government units, i.e. for financing the budget deficit or budget expenditures. In the budget jargon r. is included in the so-called bill under the line together with the budget expenditures (income and expenses in the bill above the line). The planned amount of b.r. of local-government units and their plan are included in the budget resolution. Local-government units plan the b.r. also in the long-term perspective in → Long-term Financial Forecast (→ budget’s expenditures of local-government units) [ T. Strąk ].

Literature: S. Owsiak, Finanse publiczne. Współczesne ujęcie [Public finances. Contemporary perspective], Warszawa 2017 ■ System prawa finansowego [The system of public finances], vol. II, Prawo finansowe sektora finansów publicznych [Financial law of the public finance sector], ed. E. Ruśkowski, Warszawa 2010.