Performance Management in Local Government Expenditures: Examples of 30 Provinces with Metropolitan Status Local Governments

Recep Çä°nkili㇠and Atilla Ahmet UÄžUR

Fiscaoeconomia, 2023, issue 2

Abstract: Increasing public expenditures within the framework of traditional public financial management; have become large, difficult to implement and inefficient state budgets. Countries have taken various measures for the financial situation that cannot meet the public needs. On the subject, the Hoover commission, which was made in the USA in 1949, is accepted as the beginning for the effective use of resources and the provision of quality services. In addition to Hoover Commission, the necessity of controlling public expenditures within the framework of the principles of efficiency, frugality and efficiency has emerged. Countries have started to adopt result-oriented performance-based budget systems with various practices in order to provide participatory, transparent and accountable public expenditures. In this approach, which is described as the New Public Fiscal Management approach, countries are aimed to initiate reforms according to their own structural conditions and to bring public expenditures under control with the support of necessary legal regulations and to approach the private sector, which is seen as efficient, productive and frugal. The Performance-Based Budgeting (PEB) system adopted by the Public Financial Management and Control Law No. 5018 in Turkey is a step taken in this direction. In the study, it was tested whether the expenditures of local governments comply with the performance criteria in the context of the PSB system. Analysis was made by FMOLS method using panel data analysis and the expenditures of all local governments in provinces with metropolitan municipalities in Turkey were analyzed in quarterly periods for the years 2007-2018. As a result of the study, it has been understood that the efficiency of expenditures in local governments is determined not according to performance-based budgeting criteria, but according to inflation, borrowing, share from the central budget, election economy and power of power and it has been concluded that the strategic plan, performance program and activity reports brought by the Law No. 5018 have weak relations with the budget.

Keywords: Local Government; Public Expenditure; Performance (search for similar items in EconPapers)
JEL-codes: C23 H50 H70 M10 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:fis:journl:230214

DOI: 10.25295/fsecon.1198335

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