Economist Prof. Dr. Duran Bülbül evaluates the decision to deduct unpaid municipal debts from their budgets

According to the decision, changes were made to the principles regarding deductions to be made from the shares allocated from the total collection of general budget tax revenues in exchange for the debts of municipalities and their affiliated organizations.

The phrase "and their legal entities" was added to the title of the relevant regulation.

Thus, it was stated that in addition to metropolitan municipalities, special provincial administrations, municipalities, and their affiliated organizations, their legal entities will also be evaluated within this scope.

In exchange for the debts of municipalities and their subsidiaries, the appropriations they receive from the central administration will be deducted.

"THE LOCAL PUBLIC WILL PAY THE PRICE"

Evaluating the decision issued with the signature of AKP Chairman and President Erdoğan, which will particularly put CHP-run municipalities in a difficult position, 12punto columnist and economist Prof. Dr. Duran Bülbül stated the following regarding the decision:

"With the presidential decree, the financial squeeze on municipalities is tightening. The debts of their companies will now also be deducted from the share allocated from budget revenues. Municipalities are entering a process where they will not even be able to pay wages in the coming days. 

I had called for an administrative and financial sharing law on this issue to be enacted before the elections, but despite my calls to all parties, they turned a deaf ear. 

The financial strangulation of municipalities by the central government is too big to be solved with a few demagogic statements. 

The local public will pay the price for this financial squeeze. It is urgent that a financial constitution be enacted that is based on service and revenue, governing the taxes collected from citizens between the central administration and local administrations.