The MFF as a Tool Supporting the Implementation of the Development Policy of Local Government Units on the Example of Self-Governed Provinces

Purpose: The article points out the essence and the role of the multiannual financial framework (MFF) in the implementation of the development policy of a given local government unit (LSGU). It was investigated whether the possibilities of this instrument are actually used in practice. The article compares the main financial volumes of individual Polish provinces in 2018-2020, i.e., the level of income, expenditure, debt, as determinants enabling the relative implementation of development policy. Design/Methodology/Approach: The construction of the MFF makes it possible to assess the financial situation of a given region and to identify the resources earmarked for the implementation of investment tasks aimed at stimulating this development. The set tasks and the defined objective determined the research procedure in which empirical data were analysed, measured and evaluated. The source of data were long-term financial forecasts for self-governed provinces in Poland, data provided by the CSO, the Ministry of Finance and Regional Chambers of Accounts. The research covered the period 2017 - 2020 and was based on, desk research method, quantitative methods, in particular statistical methods as well as comparative methods, and praxeological methods. Findings: The results of the research carried out indicate that, unfortunately, the possibilities of the MFF and, above all, its reality are not always used in local government practice. Very often (on the example of the analysed provinces) it was changed and property (investment) expenditures were transferred to the next budget year. Practical Implications: Actual and realistic planning of investment expenditures stimulating development and pro-innovative actions in a perspective exceeding a given budget year, using a multiannual financial framework, is a key and necessary condition for achieving long-term development of a given region. The MFF is also a very important instrument for the banking sector, councillors and residents of the region. Originality/Value: The results of the study reflect the applicability and effectiveness of the multiannual financial framework in terms of stimulating and supporting the implementation of development policy.