FINANCING INFRASTRUCTURE INVESTMENTS IN LOCAL GOVERNMENT UNITS – A CASE STUDY OF THE RURAL COMMUNE OF LIDZBARK WARMIŃSKI

Abstract

Investments made by local government units, especially inputs into infrastructure, are a major factor of sustainable socio-economic development. These are the most important tasks faced by local governments. Investments in infrastructure are necessary for people, for the proper functioning  of economy, and to facilitate the circulation of goods and capital. A decision to carry out an investment project requires skillful fi nancial management by a given local government and should generate some socio-economic benefi ts. The execution of investment projects in rural areas mainly involves the construction and modernisation of technical and social infrastructure. As a rule, high costs incurred by such investments will be covered in part by the local government unit where they are implemented.  The local government has to seek additional funds from external sources. The aim of the study was to analyse the sources of fi nancing of infrastructure investments and to evaluate their implementation in a selected rural community. The rural commune of Lidzbark Warmiński, located in the district of Lidzbark Warmiński, was used in this case study.