Effectiveness of performance based budgeting system in municipalities in Turkey: Kütahya Municipality sample

One of the units that have a significant share of the local governments, which is considered as initial step for local people to participate to the management, is the municipalities It is mainly caused by that the municipalities are the closest administrative units to the public. The municipalities' work that based on until the Ottoman Empire, serves today continue their institutional development with democracy, transparency, accountability, efficiency and productivity. The necessity of planning and implementation of the revenues and expenditures required to realize the public needs within a certain order has caused the concept of the budget system. The Performance Based Budget System, which is mainly taken in this study, is the most advanced form of modern budget understanding. The main objective of the Performance Based Budget System is to develop the necessary structures for the state-citizen relationship to move forward in the good direction. Within the framework of the financial management practices initiated by the Public Financial Management and Control Law No. 5018; the effective use of municipal resources will be carried out within the framework of fiscal transparency and accountability principles of management. Kütahya Municipality was investigated as a sample institution in this study which was prepared to examine the implementation and efficiency of the Performance Based Budget System in municipalities. It has been observed that the Kütahya Municipality has been in a positive transition period with the passing of PEBS, in the direction of a more bare, transparent and participatory structure in terms of operation.