REVENUE ASSIGNMENT TO LOCAL GOVERNMENTS IN FİNANCİAL FEDERALISM
MALİ FEDERALİZM KAPSAMINDA GELİRLERİN YEREL YÖNETİMLERE DEVRİ

Author : Yıldız ÖZKÖK
Number of pages : 294-305

Abstract

Federalism, one of the most important government models, was often dealt with in political and administrative dimensions, has recently begun to be examined at the financial level. There are many reasons why financial federalism has been generally acknowledged in the world in recent years. The most important reason of this acceptance is that the local government units better understand the local preferences and needs according to the federal government, and thus this improves the efficiency of the public sector, thereby it contributes the acchieve a higher growth rate and better macroeconomic performance. At the core of fiscal federalism lies the fact that local governments should be autonomous in their spending decisions and accordingly,has the authority to self-determine and raise their incomes. In this context, there are four key components of fiscal federalism. These are revenue assignment to local governments, expenditure responsibilty of local governments, transfers to subnational governments and subnational borrowing. In this study, firstly the financial federalism will be explained in detail and then the revenue assignment to local governments which is crucial in components of fiscal federalism will be examined in detail.

Keywords

Fiscal Federalism, Local Governments, Fiscal Decentralization, Local Revenues

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