Open AccessOff budget financing of municipal tasks with focus on municipal bonds
Author(s) -
Barbara Hadryjańska
Publication year - 2022
Publication title -
scientific journal of the military university of land forces
Language(s) - English
Resource type - Journals
eISSN - 2545-0719
pISSN - 2544-7122
DOI - 10.5604/01.3001.0015.8024
Subject(s) - municipal bond , subsidy , issuer , bond , debt , business , finance , local government , unit (ring theory) , government (linguistics) , work (physics) , investment (military) , economic growth , public administration , economics , political science , market economy , mechanical engineering , linguistics , philosophy , mathematics education , mathematics , engineering , politics , law
The main purpose of the work was to present off-budget methods of financing municipal investments with focus on municipal bonds. As for investment risk assessment, municipal bonds are considered the safest securities, resulting from the public-law status of a local government unit. An essential attribute of a municipal issuer is that a local government unit cannot go bankrupt. The research was conducted in 2017, and the primary research tool was a questionnaire sent to 606 rural communes that are members of the Union of Rural Municipalities (Polish abbrev. ZGW). One hundred thirty-two questionnaires were received in response from rural communes located in all voivodships. The conducted survey showed that the essential source of extra-budgetary financing for municipalities is EU subsidies as well as loans and credits. Over 60% of the surveyed do not use municipal bonds because they do not know such a financial instrument and are afraid of the municipality’s excessive debt. It seems that important reasons for this are the caution and reluctance to use instruments that are not well known.