THE ACCURACY OF THE BUDGET FORECASTING IN LOCAL GOVERNMENTS IN POLAND

Abstract

The paper aims to provide a characteristic of disparities between planned and executed local government revenues and expenditures in Poland between 2001 and 2011. Therefore, the article presents errors of the budget forecasting in the local governments in Poland in this period as well as their determinants. First and foremost the author analyzes the literature in the field of the budget forecasting in the public sector, showing some constraints of this process. Furthermore, the paper examines the reports of the Ministry of Finance in Poland concerning local government budgets after the first quarter (plan of revenues and expenditures) and their execution after the year for the period 2001-2011. Thus, this research paper may be helpful for practitioners to increase the accuracy of the budget forecasting in the local governments. Moreover, it may make them aware of some variables which determine the execution of the local budget. In consequence, the improvement of the accuracy of the budget forecasting in local government may lead to the better realization of the public tasks in the community.

DOI: http://dx.doi.org/10.5755/j01.em.18.2.3901