Is the province can and do have to get into debt?

Posted by katalogi.www on April 12, 2016 at 11:10 AM

The amount of debt provinces on 31 December 2015. Compared to the previous year decreased by more than 107 million zł.

• The highest debt per capita recorded Lublin province - 349.59 zł, the smallest Podlasie - 55.60 zł.

• The total amount of debt provinces at the end of 2015. (7 154.5 mln zł) is higher than in 2015. Income tax (5 470.4 mln zł).

Is the province can and do have to get into debt?

Debt provinces at the end of 2015. Fell by more than 107 million zł, compared to 31 December 2014. (Fot.fotolia)

Debt provinces at the end of 2015. Fell by more than 107 million zł, compared to 31 December 2014. Twelve provinces has reduced its debt by more than EUR 420 million zł, while the four province increased their debt by nearly 313 million zł.


In nominal terms the debt fell the most in Mazowieckie about 144.9 million, Warmia-Mazury 59 million, 40 million Greater and Kuyavian-Pomeranian about 35.8 million.


The largest increase in debt occurred in the region: Silesian of 128.4 million, 127.6 million of Lublin, Podlasie 37.0 million and Świętokrzyskie 20 million.


At the end of 2014. Debt in five provinces - Mazowieckie, Lower Silesia, Lublin, Silesian and Greater - exceeded 500 million, and at the end of 2015. Debt exceeding half a billion zlotys recorded four of the region - dropped out of the list Wielkopolska Region.



Debt per capita in the provinces amounts to 185.67 zł. Higher than average record Lubelskie - 349.59 zł, BC - 282.95 zł, Lower Silesia - 256.75 zł and Warmia - Mazury - 211.52 zł.

The lowest debt per capita was recorded in Podlaskie - 55,60 zł (an increase of 30,88 zł), Lesser - 133.58 zł (decrease of 4,94 zł), Greater - 133.59 zł (decrease of 11.54 zł ) and Pomeranian - 135.45 zł (decrease of 9,09 zł).


On average, debt provinces per capita decreased by 2.79 zł. The largest decline in the debt per capita recorded the Warmia - Mazury of 40.64 zł, Opole of 29.53 zł, BC about 27,32 zł and Bydgoszcz of 17.09 zł and Greater of 11.54 zł.


The highest increase in debt per capita was recorded in Lubelskie of 58.92 zł, Podlaskie of 30,88 zł, Silesia of 27.82 zł and Świętokrzyskie 15.60 zł.


What it is dangerous for provincial budgets


The threat is not the amount of debt, or in nominal amounts or per capita. The threat may be the loss of the ability to repay obligations or such a burden on budgets debt that capital expenditure are marginal. It seems that the operating surplus is also not the best measure of assessing ability to repay debt.


An important indicator of the ability to repay debt may be the ratio of debt to the amount of their income tax.


In this situation the country put together so that the level of debt provinces (7 154.5 mln zł) is higher than their income tax (5 470.4 million zł.). Only three provinces debt at the end of 2015. Is lower than in 2015. Income tax, they are Podlasie - 71.77%, Greater - 78.84% and Pomeranian - 91.41%.


In the province of Lublin debt is 4.47 times higher than the income tax, and in the Warmia - Mazury by 2.67 times.


You have to be stressed however, that the ratio of debt to their income tax does not determine a fundamental ability to service debt. The truth is that some of the province for debt service may allocate up to half of the income tax, and for other purpose one-tenth of becoming a huge burden.

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