Subject and Keywords:
In legal regulations regulating financial management, among others of communes, the legislator obliged the disposers of public funds to spend them effectively. Subsidies constitute a very large group of expenses in municipal budgets, especially current expenses. Municipalities may entrust the performance of some public tasks to other units and provide subsidies for the financing of their implementation: subject, objective or targeted. Municipalities after granting a subsidy and transferring funds to the beneficiary’s disposal lose direct control over their use. The author decided to check in this article whether the provisions of law regulating the management of public funds provide solutions ensuring efficient grant granting. The conducted research allows to state that, unfortunately, the law regulating the granting of a part of subsidies, especially entity subsidies constituting the dominant group of subsidies, does not transfer the general principles of spending public funds on subsidies. The law in this area is incomplete and inconsistent.