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This article analyses the financial situation of Polish local 23 government units in the context of the development of smart cities and tries to 24 answer the following research problems: Could a small city be smart? and Doesn’t 25 the creation of smart cities deepen socio-economic differences between regions? 26 Because, the international rankings – which identifies and evaluates smart cities – 27 clearly show that smart city is a unit with dominant technological, demographical 28 and economic potential. In the article the literature studies in the field of smart 29 cities were used as well as the analysis of local budgets and incomes structure. 30

Financial condition of local government units as a determinant of smart cities development in Poland