Legal and fiscal instruments in people's councils' finance

The advantages of financial instruments viewed as forms of exerting the influence of the center upon the local economy and of the local organs on various subordinated and non-subordinated subjects acting in the area of the councils' competence are studied in the article. The discussed problems are divided into four parts. In the first one the range of local economy being in the uptrend in the whole world is presented. The range and forms of the councils' activity are analysed against the background of the new regulation of The People's Councils Act. The forms of planning granting the councils rights to independent local planning are indicated, it is resulting from the spirit of the new act revealing trends four parts. In the first one the range of local economy being in the uptrend in to increase the independence of councils. The second part brings a study of various forms of local incomes which are constantly, for many years being unsufficient to cover needs of the councils resulting from their tasks. Various taxes defined in the new act as local are estimated from the viewpoint of their fiscality and forms of their effectiveness on a taxpayer. Unfortunatelly in that matter the councils are not vested with too many rights to grant reductions, increases etc. as it remains in the competence of the Minister of Finances. Consequently the influence of the councils in the fiscal policies is slight. It is also indicated that the activities of local eterprises has to be extended in future, as when they are established as economically strong enterprises, they can bring economic and fiscal profits to the councils. The third part is devoted to the questions of equalizing incomes which became an indispensable element in the councils' financial system. The critical study concerns some of the equalizing income constructions recently introduced, especially in cases when the immediate forms of their granting take place, in the instance of fixed portions when the participation in the extra plan income is limited to the small sum of merely 1%, similarly not obtaining profits derived from portions below 1% is covered by the central budget. This cannot influence the councils' interest in reaching higher profits nor does it increase their responsibility for lower incomes. The final, fourth part presents various forms of financing joint tasks in form of funds, taking up joint and accompanying investments etc. what can aid and finance local tasks which are not .sufficiently covered in the councils' budgets. In the conclusion of that part the authoress postulate to extend, in the future reforms, the credit and loan forms of financingi what can prove to become more justified, in face of economizing the local economy, in comparison with the unreturnable financing which can be granted in the easy way.Digitalizacja i deponowanie archiwalnych zeszytów RPEiS sfinansowane przez MNiSW w ramach realizacji umowy nr 541/P-DUN/201