Economy & Business, Volume 11, 2017

Abstract: The appropriate management of the resources by public sector units is essential. The observations show that the state of the finances of local government units in Poland has changed considerably. The most difficult financial situation occurred during the crisis, i.e. 2009 - 2011. At that time, about 80% of municipalities in Poland showed a deficit. The question arises whether it was possible to avoid such a situation? The purpose of this article is therefore to recognize to what extent the tax preferences used by municipalities contributed to the level of own income obtained by these units.