Auditors from the Regional Chamber of Audit (RIO) have concluded that the city’s plans for 2030 are unrealistic. Moreover, they assessed that the provisions adopted by Krakow city councillors “are not realistic and may in the future threaten the city’s budget.” The Regional Chamber of Audit (RIO) is a state authority that serves as a safeguard for the financial stability of local governments.
The institution reviewed the Long-Term Financial Forecast adopted by the Krakow City Council. According to lovekrakow.pl, “RIO noted that in the 2030 forecast, debt servicing expenses decrease by nearly 27 million PLN, even though the city plans to take on new liabilities amounting to 155 million PLN during the same period. According to the Chamber, the discrepancy was not explained.” The justification further emphasized that “the document does not contain explanations confirming that the data are realistic.”
Scandal in Krakow
This means not only that the provisions adopted by the councillors are unrealistic, but that they may also pose a threat to the city’s budget in the future. The document reviewed by RIO also contained information on planned reductions in current expenditures by the city hall, but the reasons for those cuts were not justified.
City councillors had previously raised concerns about Krakow’s growing debt. As it turned out, the letters from RIO have not yet reached all local councillors. What’s more, those who did receive them were obliged to respond to the auditing body but, despite the deadline having passed, they failed to address the issues raised.
President of the capital of Małopolska, Aleksander Miszalski, formerly an MP for the then Civic Platform (PO), won the Krakow mayoral election with strong backing from politicians of that party and replaced longtime city leader Jacek Majchrowski. Opposition councillors are now demanding that he explain the city’s dire financial condition and its continued accumulation of debt.