In Turkey municipalities finance structure and financial problems: The example of Konak municipality

Municipalities are one of the most important local governance units among the local management institutions. As municipalities are closer to the public and have smaller scales, they have the opportunity of supplying the demands of the public and solving the problems in a faster and more efficient way.Municipalities? being able to produce the efficient and effective services according to the needs and expectations of the public depends on their receiving necessary resources in accordance with their duties. Resource problems influence the municipalities? effective service implimentation in a negative way and by time forces them to become more dependent on central government. This situation causes munucipalities to diverge from the principle of fiscal autonomy.This study aims to analyze the fiscal structure of the municipalities and the causes of their financial problems. In the first part of this study, genaral information about the concept of local governance and the municipalities in Turkey are given, while in the second part the fiscal structure of the municipalities in Turkey, their evolution and their financial problems are analyzed. Finally the third part is devoted to the information about financial structure and financial problems of Konak Municipality and also in this part the evidence from the questionnaire about the fiscal structure of Konak Municipality is evoluated.