Dilemmas of financial policy of local government units in a context of implementation of public tasks

This article aims at identification of the challenges which local government units are facing. Particular emphasis will be put on issues related to the financial management of these units. The article describes problems of performing tasks at a level of a community, county and self-government province. The text presents a range of own and delegated duties of the previously-mentioned units. It also refers to an organizational – legal form of performed tasks. The article puts a special emphasis on dilemmas of financial economy of local government sector. The aim of this paper is to study a transformation of a present financial policy of local government units, to point out weaknesses and strengths of current solutions. A definition of a balanced development is given to identify measures of implementation of this development, and to refer to problems of financial policy which require a joint engagement in solving them. The article also estimates a real chance for a change of the local government sector financial structure (regulations and functioning rules), as well as for an implementation of new decision-making methods that would improve the effectiveness of public finance management.