Borrowing as financial resource of municipalities in turkey and Tekirdağ Municipality (1996-2006)

Public administrative is being reconstructed, effected from the changes with globalization and local governments that of public administrative unit have an importance. The public service area of the local governments increases as a result of influence of urbanization. Municipalities, which have a special role in the local government, have to sufficiency in source of revenues in offering the local services as efficiency and effectiveness.In Turkey, the fundamental problem of municipalities is the gap between financial resources and municipal expenditures needs. The general budget tax revenue shares, which have most important revenues of municipalities, were lessened due to stabilization programs. The own sources of its are not sufficient to accomplish expenditures of responsibilities and duties.In Turkey, municipalities have been financed with borrowing which have resulted from weak financial capasities, rapid urbanization and need of to give better service. The municipality revenues are not sufficient to accomplish the urban sub-structure project and local services. Thus, domestic borrowing and foreign borrowing were continual and important revenues.Almost half portion of Tekirdağ Municipality budget includes from central government transfers and grants. The own resources were not sufficient in charge of expenditures. Tekirdağ Municipality has to apply borrowing to ensure the capital investment projects and to finance the budget deficit of municipal. Finance revenues as borrowing of its increases from year to year and debt burden of the Tekirdağ Municipal increases.