[Work in progress] Evaluation of the financial situation of local government in the Podkarpackie voivodeship in comparison to other Polish regions by means of taxonometric methods.

Abstract

Aim: The aim of the article is to present the financial situation of local governments in the Podkarpackie Voivodeship compared to other Polish regions in the simplest yet most substantive way.

Methodology: The objective was achieved by applying six taxonometric methods across two categories of objects. The extensive results necessitated the selection of the optimal method. The results of the selected method were subjected to a detailed indicator analysis.

Results: The financial situation of LGUs in the Podkarpackie region is around the average assigned to Polish LGUs when considered regionally. Two particularly interesting patterns were also observed. First, the better financial condition of the Podkarpackie Voivodeship compared to the municipalities within it highlights the active state policy aimed at preventing developmental exclusion in Eastern Poland. Second, the poorer financial situation of cities with county rights compared to municipalities and counties in Podkarpackie illustrates both the excess of current expenditures in these cities and their low share in PIT and CIT revenues.

Implications and recommendations: It is recommended to implement these or similar findings reflecting the financial situation of local governments into the diagnostic phases of programming.

Originality/value: This is the first time taxonometric methods have been applied to assess the financial situation of local governments at different levels on a regional scale. A new method for selecting the optimal taxonometric methods was also presented, utilizing both the literature and an original proposal for implementing a procedure to exclude outliers for Pearson's linear correlation and Spearman's rank correlation analysis.