• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing:  ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2016 Vol.7(3): 51-55 ISSN: 2010-023X
DOI: 10.18178/ijtef.2016.7.3.498

Intensity of Fiscal Illusion in Local Self-Government in Poland: Trends and Threats

Beata Guziejewska
Abstract—This article presents the preliminary results from the quantitative part of the broader study the aim of which is to investigate the consequences of the current system of financing local self-government entities in Poland in the context of fiscal illusion. This system of revenue is characterized by low fiscal importance of the local taxes and fees and a high contribution of transfers from the central budget: general grants, specific grants, shares in the PIT (Personal Income Tax) and CIT (Corporate Income Tax). The study used an improved questionnaire with closed-ended questions based on the five-level Likert scale. This article presents the part relating to the intensity of fiscal illusion. The results demonstrate the low esteem of “own revenues” in the eyes of the councilors. The councilors are against raising local taxes and tend to demand an increase in the transfer revenues for the municipal budgets, which reinforces demanding attitudes and hinders local democracy. The question of whether this will play an important role in the perpetuation of fiscal illusion and thus sustain a loss in local responsibility, democracy and civil society is still an open one.

Index Terms—Public finance, local government finance, fiscal illusion, fiscal decentralization.

The Author is with the Department of Public Finance, University of Lodz, Rewolucji 1905 r. 39 st., 90-214 Lodz, Poland (e-mail: beata.guziejewska@uni.lodz.pl).


Cite: Beata Guziejewska, "Intensity of Fiscal Illusion in Local Self-Government in Poland: Trends and Threats," International Journal of Trade, Economics and Finance vol.7, no.3, pp. 51-55, 2016.

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