Innovations to municipalities that are caused by the "5018 numbered Public Financial Management and Control Law"

Nowadays in the world and in Turkey, industrialization and producing new technology in the private sector is developing rapidly. In the contrary, the Public sectors are financially straitened against the developments. It is to be seen that the developed countries all around the world insert their financial managements into a reformation process. As a result of the developments in the world, it has become absolutely necessary in our country to make a Financial Management Reform in order to keep in step with worldwide applications. In this context, the better and rational use of public sources became the most urgent thing. And there are made a lot of Public Finance Reformations for the purpose of using the public sources more economic, more active and more efficiently.The most important one of these reforms is enactment and legalization of ?5018 numbered Public Financial Management and Control Law?. Owing to this law, public sources will be used more effective and efficient; it will be provided rendering an account and financial transparency. In addition to this, the financial control system discussed under the independent headline in the process of turkeys being member of European union public is milestone in the process of researching and negotiation term.The innovations to the ?Turkish Budget System? and the possible influences to the ?Public Financial Management? that are caused by the ?5018 numbered Public Financial Management and Control Law? were inspected in this study out of the perspective of municipalities. The problems that come into prominence were also discussed in this study. Furthermore, the application way of the law at BUSKİ has been given in the appendices part with the intention of finding out the law better.As a result of the comparisons that were made between the 5018 numbered law and the 1050 numbered law ; it is determined that the concept of transparency, a good working ?rendering an account? mechanism and the entireness of the budget are provided with the new law. And owing to the strategic plans that were made before the budget, unnecessary expenditures were prevented by making source-duty and cost-benefit analyses.