The relationship between municipalities? fiscal and service performance

Local governments are relatively closer to the citizens for providing public services comparing with the central government. Therefore, accountability is stronger in the local governments. Implementation of the performance measurement is the precondition for the achievement of such an accountability.This study is established on the bases of two subjects. Firstly, a comprehensive literature review has been carried out regarding the performance measurement and its implementation in the public sector, followed by an assesment in the perspective of local governments. In this context, examples of best municipal practices and previous studies of performance measurements in the municipalities are provided. Then, the relationship between fiscal and service performances of the municipalites has been examined through statistical methods together with a final assesment of the results obtained.Key words: Performance measurement, accountability, municipality, fiscal performance, service performance.