FINANCIAL POSITION OF RURAL COMMUNITIES IN GALICIA IN THE SECOND HALF OF THE XIX CENTURY – FIRST THIRD OF THE XX CENTURY (BY WAY OF EXAMPLE OF THE LVIV DISTRICT COMMUNITIES)

Abstract

The Study Objective is to analyze the main provisions of the Public Law dated August 12, 1866, which provided for the filling of local budgets, and the structure of revenues and expenditures by way of example of the communities in the Lviv District, to find out the reasons of insufficient financial support for their activities in view of the broad powers given to rural communities by the Law. The Research Methodology is based on the complex application of general scientific methods (analysis, synthesis, generalization) and special historical methods, in particular, the systematic historical method. The Scientific Novelty of the study derives from the fact that the main income and expense items of the communities have been analyzed in detail, and it was found out that their weak financial position was a direct consequence of the guideline built into the Act dated August 12, 1866, which provided for the creation of territorial community on the basis of each settlement, regardless of their population size and economic capacity to finance their expenditures. Conclusions. It has been noted that the main reason for the weak financial situation of rural communities was the general economic backwardness of Galicia in comparison with other crown lands of the Empire, considerable expenses for the maintenance of the administration, expenditures for the execution of the powers entrusted. The permanent lack of funds forced the community administration to resort to new borrowings, the repayment of which and the reimbursement of interest on their use increased the debts of the communities and made them dependent on administrative authorities. The financial insolvency of rural communities was one of the major disadvantages of the newly established system of local self-government in Galicia.