A National Institute of Territorial Self-Government estimate reveals Polish local governments may have supplemented state funding for assigned tasks by as much as 2.1 billion złoty.
Local Government Supplemental Funding Estimated
Local governments may have contributed up to 2.1 billion złoty more to state-assigned tasks than the funding received from the state budget, according to estimates by the National Institute of Territorial Self-Government (NIST).
The NIST study surveyed 115 municipalities, 16 cities with powiat rights, 41 powiats, and 8 voivodeships, examining the financing of two tasks per group to estimate the difference between expenditures and received subsidies.
Report Details and Scope
The NIST estimates are preliminary to a comprehensive report titled “In the Abyss of Uncertainty, or the Financing of Tasks Assigned to Territorial Self-Government Units.”
In 2025, state subsidies for assigned tasks totaled 33 billion złoty, representing approximately 7% of local government budgets (466 billion złoty). NIST previously investigated court cases won by local governments against the state regarding underfunding of assigned tasks.
Tasks Examined and Funding Gap
NIST inquired about the financing of tasks including population registration, economic activity, property management, and family benefits. This resulted in an estimated nationwide difference of 749 million złoty between expenditures and subsidies for these specific tasks.
For all assigned tasks, the difference could be at least 2.1 billion złoty.
Caution Regarding Extrapolation
Professor Paweł Swianiewicz, NIST director, cautioned that the extrapolation should be treated with significant caution, acknowledging the results are approximate and potentially underestimated due to incomplete data from some local government offices.
He clarified that the findings represent a difference between expenditures and subsidies, not necessarily a funding gap, as NIST lacks the means to assess the necessity of all local government expenditures.
Local Government Perspectives and Legal Action
Local government officials emphasized the recurring need to supplement funding for assigned tasks from local budgets, and cited lengthy legal proceedings when pursuing claims against the state.
Krzysztof Kosiński, the president of Ciechanów, expressed confidence in a favorable court ruling and accruing interest exceeding the initial claim of 6 million złoty.
Government Approach and Legal Battles
Experience in disputes with the state over underfunding confirms NIST’s findings, revealing that even medium-sized municipalities face funding shortfalls in the millions of złoty.
Local governments often pursue legal action only for a portion of their expenses, such as payroll costs, avoiding claims for other costs incurred due to the assigned tasks.
Pressure for Systemic Change
The government prefers lengthy legal processes, anticipating that the prospect of years in court will discourage many local governments from pursuing claims, resulting in cost savings.
Maciej Kiełbus, a legal partner, believes increased pressure from further court losses is the only way to change the government’s approach and establish more civilized financing principles for assigned tasks.
Ministry of Finance Response
Hanna Majszczyk, Deputy Minister of Finance, acknowledged the increased reserve for assigned tasks allocated by voivodes.
She questioned labeling the NIST analysis as a “report,” citing its reliance on survey data and numerous caveats, while still appreciating the breadth of the work.
