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Abstract

Local government responsibility to create and sustain conditions for economic growth requires rational management of assets and responsible financial policy. Thus, the government’s capacity to achieve its objectives hinges on its ability to maintain a sound financial condition. Main aim of the article was to evaluate financial condition of Wielkopolska province rural communes and identify relationships between that evaluation and the level and structure of the communes’ income as well as some external determinants. The study drew on data from Central Statistical Office, its branch in Poznan, and the Ministry of Finance. Financial condition of 15% of all Wielkopolska province rural communes was found strong, and of 10% – weak. Different classes of financial condition showed marked differences in the level and the structure of income sources. Rural communes of strong condition had 2.5 higher ratio of own income in total income sources than the communes of weak condition, four times higher level of real estate income, and three times higher level of personal tax share.

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