Disappearing local Poland. PIE report on the financial consequences of depopulation

The report of the Polish Economic Institute clearly shows that since 2004, as much as 70 percent Polish municipalities recorded a decline in the number of inhabitants. The author of the study "Disappearing Local Poland. Financial effects of depopulation of municipalities", Agata Mróz, described depopulation as a "hidden tax". In her opinion, the persistence of this phenomenon has a direct impact on the financial condition of local governments.

The author of the study stated that the persistence of depopulation translates into finances and "gradually limits the ability of local governments to generate their own budget revenues."

Increasing costs, decreasing revenues

PIE's analyzes show that in communes affected by depopulation, the costs of public services per capita are growing faster than in other regions. Fewer residents mean lower budget revenues and, at the same time, higher expenses for maintaining infrastructure and providing basic services.

Demographic changes have divided counties and regions into "winners" and "losers". "Losers" are those from which at least every third young person has migrated within two decades - notes a demographer from the University of Łódź, prof. Piotr Szukalski.

The most depopulated regions

According to the report, the largest outflow of young people was recorded in the counties of Hrubieszów and Krasnystaw in the Lublin Voivodeship and Bartoszyce in the Warmian-Masurian Voivodeship. About 40 percent of young residents left each of these regions, looking for better prospects in larger cities.

Experts emphasize that local governments are finding it increasingly difficult to cope with demographic challenges. Marek Wójcik, an expert at the Association of Polish Cities, points out that "it would be easier for local governments and local communities to cope with demographic challenges if the law were more supportive of such solutions."