An Analysis of Fiscal Democracy Index of the Municipalities in Turkey and the Assessment of the Relationship between Fiscal Autonomy

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Güngör Göksu G., Küçükaycan D.

in: Acedemic Studies in Social, Humanities and Administrative Sciences, Balcı İzgi Berna,Alili Sulejmani Liza,Hassan Sobia, Editor, Gazi Kitapevi, Ankara, pp.41-52, 2023

  • Publication Type: Book Chapter / Chapter Vocational Book
  • Publication Date: 2023
  • Publisher: Gazi Kitapevi
  • City: Ankara
  • Page Numbers: pp.41-52
  • Editors: Balcı İzgi Berna,Alili Sulejmani Liza,Hassan Sobia, Editor
  • Eskisehir Osmangazi University Affiliated: Yes


The Fiscal Democracy Index (FDI), utilized to determine mathematically to what extent fiscal democracy is implemented in a country, denotes the ratio of the total public revenues obtained by the deduction of mandatory public expenditures to the total revenue budget. General conviction suggests that the higher this ratio is, the stronger the fiscal democracy in the relevant country is. In terms of local administrations, fiscal federalism and autonomy are closely related to fiscal democracy. Notably, the local administrations having a sufficient amount of their own income allows them to allocate more resources for optional expenditures in their budgets. The study seeks to measure the FDI index of Turkish municipalities and to determine the relationship between fiscal autonomy and local FDI. The study analyses the FDIs of the municipalities, divided into four groups for analytical purposes: metropolitan municipalities, metropolitan district municipalities, non-metropolitan provincial municipalities and non-metropolitan district municipalities. The municipalities supervised by the Court of Auditors in Türkiye are included in the scope of the study, and the findings correspond to the municipalities that have been audited by the Court of Audit. In the analysis, the local FDI values of all municipalities have been mathematically calculated by using the final budget income and expenditure amounts of the municipalities retrieved from the reports of the Court of Audit. The conclusion part of the study presents what measures can be taken to increase the local FDI and how the current situation can be improved in Türkiye.