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The Renaissance of Local Self-Government

03.09.2024

"This day will go down in the history of Polish self-governance," summarized Prime Minister Donald Tusk at today's Council of Ministers meeting. The government adopted a draft bill on the revenues of local government units, prepared by the Ministry of Finance. Thanks to this reform, the revenues of LGUs will increase by 24.8 billion PLN in 2025, granting local governments the long-awaited independence. Over the next 10 years, they could gain up to 345 billion PLN from this change.

Prime Minister Donald Tusk and Minister of Finance Andrzej Domański during a press conference at the Chancellery of the Prime Minister.

Time for Regional and Local Poland

Prime Minister Donald Tusk announced during today's press conference that the government had adopted the project for the reform of local government revenues.

"Polish local governments have been waiting for this proposal for many months, if not years,"

said the Prime Minister.

The process of devolving power from the center to regional and local Poland began during the formation of Tadeusz Mazowiecki's government. The project adopted today is another step towards decentralizing power and ensuring the independence that local governments have long fought for.

"Local government revenues will no longer depend on the whims or fancies of those in central power,"
declared the head of government.

Today's reform will provide LGUs with a sense of stability for years to come, regardless of the composition of the central authorities.

"Local governments want to have certain, guaranteed sources of money. (...) If we plan to reduce taxes in the future, for example, it will not affect the money that goes to local governments because it will depend on the so-called tax base,"
explained Donald Tusk.

The reform will strengthen the developmental potential of local communities, which know best how to invest in their surroundings and the needs of their residents.

More Money for Local Governments

Thanks to the introduced reform, the revenues of local government units will significantly increase. In 2025 alone, this will be 24.8 billion PLN more than under the current system.

"A cautious and honest estimate says that over the next 10 years, local governments will receive more funds than if this change had not been made, by 345 billion PLN,"
calculated the Prime Minister.

These are not the only funds that will strengthen local and regional budgets.

"Step by step, we are repairing the strength of Polish self-governance. This year, we will provide Polish local governments with an additional 10 billion PLN, as we previously declared,"
said Finance Minister Andrzej Domański.

Donald Tusk reminded that local governments could also count on European funds, which would not be available without the outcome of the October 15 elections.

Benefits for Every Municipality

The reform will benefit all local governments.

"We have prepared changes that will benefit every local government unit in our country, each and every one. Both large and smaller municipalities will gain,"
assured the Finance Minister.

The government also remembered local governments with "green areas," national parks, landscape parks, Natura 2000 areas.

"These are areas that we all benefit from. However, local communities, local governments, bear the financial costs. It is obvious that industry will not - fortunately cannot - develop in such areas, which is why the revenues of local governments decrease,"
observed Minister A. Domański.


Appropriate compensations have been provided for such LGUs.

Less Money for the Presidential Office, Institute of National Remembrance, and Supreme Court

Prime Minister explained why the budget project for 2025 recorded shockingly large funds for the Presidential Office, the Institute of National Remembrance (IPN), or the Supreme Court.

"There is a certain category of institutions - including the Presidential Office or the IPN, for which the government does not design the budget. They themselves send information about what their budget should be,"
explained the Prime Minister.

Donald Tusk noted that the current government is cutting its own expenses and looking for savings in them. The budgets of the mentioned institutions should meet a similar fate, but the government cannot interfere. The decision in this matter will be made by the deputies during the work in the Sejm.

"Of course, we will propose that, proportionally - as we try to save on government institutions - significantly less money goes to both the Presidential Office and the IPN. Not to mention those institutions whose existence from a formal point of view is doubtful, and their actions even more so,"
stated the head of government.

The Prime Minister referred to the Supreme Court - especially in the context of today's unlawful takeover of the Labour Chamber in the Supreme Court by M. Manowska.

"Of course, no decent and serious person, including the judges who sit in this Chamber, will respect her absolutely unlawful decision to take control of the Chamber,"
assured the Prime Minister.

The Ministry of Justice will file a notification of the suspicion of committing a crime by M. Manowska.

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