The article is of a theoretical and empirical nature. The main purpose of the article was to verify the existence of a relationship between the level of expenditure and tax revenue per capita of a given local government unit. In the study for real income, the state of tax revenue per capita was assumed, all expenses of functional classification as well as total investment expenditure were considered expenses. An attempt was made to obtain an answer to the question whether there is a causal relationship between the commune’s income and expenses. The hypothesis that the increase in per capita income contributes to the increase in per capita expenses and vice versa was verified. In order to determine the direction and the correlation forces between the analyzed categories, Pearson’s linear correlation coefficient was applied. The Granger causality test was used to verify the occurrence of causal relationships. Relationships between selected categories were examined using regression analysis. The main source of information in the theoretical part was literature on public finances, normative documents, publications in serial publications and magazines as well as Internet resources. The empirical part uses data from the budgets of the Mielno commune from 2009-2016 regarding the amount of expenditure and income.