Regional net fiscal incidence in Turkey

One of the important goals of goverment policy is to address inequalities in the distribution of income and try to improve the welfare. An important part of the theory and practice of public finance is indicated how the revenue and expenditure sides of goverment budgets affects the distribution of income among regions. This is known as tax and expenditure incidence or in short fiscal incidence at the regional level.In Turkey, between 1990?2003 while the region which has the highest share in national income is Marmara Region, the least one?s are East and South East Anatolian Regions. Establishing the incidence of taxes is important because regions bear the burden of taxes is generally quite different. Establishing the incidence of goverment expenditure important because not all expenditures benefit regions of different income levels to the same extent. Goverment budget must realize distribution of revenue and expenditure in an equitable way in order to get a fair distribution function among regions.When we evaluate the process from such a perspective, the basic aim of this study is to analyse the determiners of regional net fiscal incidence in Turkey. In Turkey, regional inequality and differences of income distribution are some subjects which are often argued.Keywords: 1) Regional Policy, 2) Tax Incidence, 3) Expenditure Incidence, 4) Fiscal Incidence, 5) Regional Income Distribution.