Determinants of the distribution of the central-government budgetary grants in Turkey


Tekeli R., KAPLAN M.

ENVIRONMENT AND PLANNING C-GOVERNMENT AND POLICY, vol.26, no.5, pp.954-967, 2008 (Journal Indexed in SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 26 Issue: 5
  • Publication Date: 2008
  • Doi Number: 10.1068/c0672r
  • Journal Name: ENVIRONMENT AND PLANNING C-GOVERNMENT AND POLICY
  • Journal Indexes: Social Sciences Citation Index, Scopus
  • Page Numbers: pp.954-967

Abstract

Intergovernmental grants are the main revenue source of local governments. In the fiscal decentralization literature it has been argued that fiscal disparities across the regions are accounted for in the central-government grant distribution. However, some argue that grants are given to localities to increase the reelection chances of the incumbent or to increase the votes at election. To compete with the opposition parties the incumbent party may try to allocate the grants to aligned local governments. In this paper we analyze the grant allocation in Turkey. We test empirically whether central-government's budgetary transfers to the municipalities were made on the basis of economic criteria or in accordance with the political interest of politicians, and hence the coalition government. To test the hypothesis we followed the literature but we used additional variables. Using municipal data in sixty-one provinces, we find that the desire to secure reelection motivates politicians.