The aim of the research was to establish the most important economic and administrative factors that had shaped the possibility of using available sources of financing of public investment projects. The analysis was concentrated on attempts to identify and asses the process of regulating general value of public investment at the municipal level. Significant difficulties in maintaining a stable level of financing for the development tasks were rooted mainly in changes in economic conditions, particularly the financial crisis, and from changes in the aces and scope of the EU funds during the programming period 2007–2013.
The risk of financing of public investments is a phenomenon that accompanies development processes in a permanent manner. Investments in the public sector are generally characterized by relatively long implementation cycles and involve significant capital expenditure and the necessity of often parallel running a large number of investment projects. In the processes of this type of investment a specific risk category of financing of this type of investment is quite often taken into account, given that such projects are financed mainly from budgetary resources: the state budget and self-government budgets. Economic practice indicates an importance of the proper selection of the method of the financing of new investments and taking into account new funds from various sources. This situation is often the result of a shortage of budgetary resources from which public investments could be financed. There may be difficulties in financing investments resulting from the emergence of a risk of budgetary deficit and the public debt. This risk may have a negative impact on investment decisions and may adversely affect the future course of ongoing investment projects. The purpose of the paper is to undertake studies on the conditions of financing investments from the point of view of the possibility of budget deficit and public debt and the impact of changes in the financial situation on the overall level of risk of public investment. The text is an invitation to undertake a broader discussion on financing public investments in conditions of limited public financial resources.
Strategic management of investment projects in the public sector seems to be one of the more complex phenomena observed in the sphere of implementation of public investment tasks. The complexity of investment processes is influenced by a number of factors with varying impact. First of all, attention should be paid to the high capital intensity of public investment and the associated significant extension of the investment cycle. As a result of the impact of these factors, public investments in most cases require large capital expenditures, and their implementation takes much longer than, for example, in industry. Secondly, public entities responsible for the implementation of investments are in a quite specific situation, which means the continuous development of various components of technical and social infrastructure. Therefore, it is necessary to indicate the strategic dimension of these investments and, consequently, the necessity to use appropriate methods of financing and managing these investments. In principle, the main source of financing public investment is, and probably will remain, the state budget, and in relation to local self-government -the budgets of these units, and therefore public resources. The purpose of the paper is therefore to present the complexity of the issue of financing public investments in relation to the identified conditions for the development of socio-economic infrastructure, financed from public funds. The study has undertaken theoretical research on public investment and research on the possibility of implementing effective management methods in strategic perspective.
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