Impact of COVID-19 Pandemic on Local Finance and Development Strategies. Case of Urban and Rural Areas in the Mazovia Region

Abstract

The paper aims to investigate the economic consequences of the COVID-19 pandemic through the prism of local finances in the Mazovia region. The rationale for this research comes from the observation that lockdown and a reduced economic activity affect revenues of local budgets. Thus, a question arises about the effect of decreased local budgets on local expenditure and the implementation of development strategies. The method applied was a survey carried out on a sample consisting of all the local administrative units (LAU) in the region. The results show that the "scissors effect" of rising expenditure and falling revenues applies to all the LAU. The analysis provides evidence that the characteristics of urban and rural LAU have consequences not only for their resilience against the COVID-19 pandemic but influence their strategies and actions adopted in response to the crisis.