Fiscal transparency of municipal companies in Turkey

Tolga Demirbaş

Abstract


The basis of the new public management (NPM) is to reduce the differences between the public and private sectors. According to this approach, “market-based public administration” should focus on customers and take their preferences into account. In addition, the government must be an entrepreneur and, if necessary, use charges and fees to finance public services. NPM, adopting the principle of "let managers manage", considers transparency and accountability for effective service provision as indispensable.

Thanks to the adoption of NPM principles, corporatization as a mode of public service delivery has become a common trend in local governments. Corporatization is the process of transforming governmental units into companies work under market condition. The local government has a majority ownership of the company. The aim of the creation a corporatized company is to deliver public services away from bureaucratic rules.

In Turkey, especially the municipalities have found many companies in different areas such as public transportation, tourism, industry, waste recycling etc. The fiscal transparency of such companies, which use public funds in significant amounts, is very important. For this reason, the main purpose of this paper is to examine the fiscal transparency of municipal companies in Turkey. To achieve this purpose, we have examined the basic financial documents that municipal companies disclosed via their websites. The paper also includes some recommendations for increasing fiscal transparency of municipal companies in Turkey.

References


Callahan, Kathe (2007), Elements of Effective Governance: Measurement, Accountability, and Participation, USA: Taylor & Francis Group.

Hughes, Owen E. (1994), Public Management and Administration: An Introduction, New York: St. Martin’s Press, Inc.

Kettl, Donald F. (2005), The Global Public Management Revolution, New York: The Brookings Institution.

OECD (1997). Modern Budgeting. Paris: OECD.

Saussier, Stéphane and Michael Klien (2014), Local Public Enterprises: A Taxonomy, Chaire Economie des Partenariats Public-Privé, Discussion Paper Series, December.


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