An Evaluation on the Current Structure of Municipalities’ Revenues and Their Structural Constraints of Increasing Revenue
Erdal EroğluThis study aims to examine the structural constraints of municipal revenues and offer some solutions to increase these revenues, focusing on the revenue structure of municipalities in Turkey for 2010–2018. In this context, the revenue structure of municipalities is analyzed within the framework of financial autonomy. The most serious problems of the municipalities in Turkey are insufficient revenue to finance their expenditures and their financial dependence on the central government. Municipalities do not have the authority to impose new taxes, and they have restrictions on creating alternative sources of revenue as required by the relevant legislation. Consequently, they go into borrowing, especially in financing their investment expenditures. This study discusses three ways of increasing municipal revenues: one is to revise current sources; the second is to generate new sources, and the third one is to use current sources efficiently. The statistical information used within the scope of the study was compiled from the data published by the Ministry of Treasury and Finance, General Directorate of Accounts, and Public Procurement Authority. The current situation analysis and policy synthesis are the methods adopted in the study. Findings reveal that municipalities have structural constraints on the issue of increasing their existing income and creating new sources of income; therefore, an expenditure-oriented perspective is required for municipalities.
Belediye Gelirlerinin Yapısının ve Gelir Artırımı Konusunda Yapısal Kısıtların Değerlendirilmesi
Erdal Eroğlu2010-2018 dönemi kapsamında Türkiye’de belediyelerin gelir yapısının, yapısal kısıtlarının ve gelir artırımı konularının incelendiği bu çalışmanın amacı belediyelerdeki mevcut durumun ortaya konularak alternatif gelir artırımı konusunda çözüm önerilerinin getirilmesidir. Bu kapsamda çalışmada belediyelerin gelir yapısı mali özerklik bağlamında analiz edilmekte ve belediyelerin gelirlerinin arttırılması hususunda yapısal kısıtlardan hareketle değerlendirmeler ve önerilerde bulunulmaktadır. Türkiye’de belediyelerin en önemli sorunu mali açıdan merkeze bağımlı olmaları ve harcamalarını finanse edecek ölçüde yeterli öz gelire sahip olmamalarıdır. Bunun sonucunda belediyeler özellikle yatırım harcamalarının finansmanı sürecinde borçlanmaya gitmektedirler. Bu durumun temel nedenlerinden biri belediyelerin vergilendirme yetkisinin olmaması ve alternatif gelir kaynakları yaratma hususunda ilgili mevzuatlar gereği kısıtlıklara sahip olmasıdır. Çalışmada belediye gelirlerinin artırılması konusu mevcut gelir kaynaklarının iyileştirilmesi, yeni gelir kaynaklarının yaratılması ve etkin kaynak kullanımı ile gelir artırımı şeklinde üç başlıkta tartışılmaktadır. Çalışma kapsamında kullanılan istatistiki bilgiler Hazine ve Maliye Bakanlığı Muhasebat Genel Müdürlüğü ve Kamu İhale Kurumu tarafından yayımlanan verilerden derlenmiştir. Çalışmada benimsenen yöntem mevcut durum analizi ile politika sentezidir. Çalışmada, belediyelerin mevcut gelirlerinin artırımı ve yeni gelir kaynaklarının yaratılması hususlarında yapısal kısıtlara sahip oldukları dolayısıyla belediyeler için etkin harcama yönlü bir bakış açısının gelir artırımı için gerekli olduğu sonuçlarına ulaşılmaktadır.
Municipalities, which are the closest units to the public in determining local needs and providing services, have become more visible on a global scale, thanks to changes in fields such as participation, citizen-oriented management approach, quality service, citizen satisfaction, and competitiveness. In this context, the duties and responsibilities of local governments have been expanded within the framework of public administration reforms and decentralization. This global trend was introduced to Turkey in the early 2000s following a series of reform efforts made toward strengthening local governments and legislative changes. Among the legal regulations, the most important are the Metropolitan Municipality Law No. 5216 and the Municipality Law No. 5393, which entered into force in 2004 and 2005, respectively. With the new regulations introduced, the expenditures of municipalities, which conducted more service activities, also increased at the same rate. However, the resources owned by the municipalities were insufficient to finance the increased expenditures. In Turkey, over the sample period 2010–2018, the major problems of municipalities were budget deficits and high borrowing. The financing problem faced by the municipalities was at the top of the agenda in the 2019 local elections. The concrete equivalent of the localization phenomenon in practice is financial autonomy. However, the analysis of the municipalities’ revenue structure revealed that they are not financially autonomous due to their insufficient revenues. Conversely, they are highly dependent on the central government, which causes the allocation of the biggest share of municipalities’ revenues from the central government tax revenues. Lack of adequate sources of income despite the increasing expenditures of municipalities causes disruptions in the provision of local services and negatively affects the service quality. Moreover, municipalities cannot establish an effective plan/budget implementation and continue to be subservient in financial management because of financial dependence on the central government. This structurally restricts municipalities in solving local problems, ensuring competition, and developing creative ideas. This study evaluates the revenue structure of municipalities in Turkey and their current structural constraints in raising revenue. This paper discusses three ways of increasing municipal revenues: (1) revise current sources, (2) generate new sources, and (3) use current sources efficiently.
In the first method, it seems unlikely to increase current revenues due to structural constraints and deficiencies specified in Law No. 2462 on Municipal Revenues. Some suggestions like the necessity of creating new sources by transferring some taxes, such as Motor Vehicle Tax and Accommodation Tax, to the local are discussed within the framework of the second method. An expenditure-based perspective on increasing revenues is presented in the last method. The statistical information used within the scope of the study was compiled from the data published by the Ministry of Treasury and Finance, General Directorate of Accounts, and Public Procurement Authority. Moreover, the method adopted in the study is the current situation analysis and policy synthesis. The findings revealed that municipalities have structural constraints on the issue of increasing their existing income and creating new sources of income; therefore, an expenditure-oriented perspective is required for municipalities.
