Streszczenie
Article aims to explain the theoretical aspects of the functioning and structure of the Polish budget. The presented theory is thus the basis for the empirical study, presenting the impact of local governments budgetary expenditure on socio-economic development of all the Polish provinces. As a research tool were used panel models with the decomposition of the intercept (FEM) and the decomposition of the random component (REM) for twenty exogenous variables in the space of three years. It is assumed that the force of the impact of expenditure on gross value of fixed assets in the areas examined is significantly different.