Changes to local government law: Spending limits for municipalities, social security debts to be deducted at the source

The draft regulation on local government prepared by the AKP envisions stricter oversight of municipal spending, binding borrowing to specific rules, making tender processes more transparent, and reorganizing zoning practices. The study also includes topics such as caps on personnel expenses, a deduction model for Social Security Institution (SGK) debts, and clarifying the division of authority between municipalities.

Don't leave your news choices to an algorithm - decide for yourself what you read. Add 12punto to your preferred sources!

Changes to local government law: Spending limits for municipalities, social security debts to be deducted at the source

The AKP has reached the final stage in its work on amendments to the local government law. The prepared draft includes various regulations regarding the financial structure, expenditure items, and administrative operations of municipalities.

NEW FRAMEWORK FOR SPENDING AND BORROWING

According to NTV, the draft plans to increase oversight of municipal spending and introduce limitations on certain items. Within the scope of restructuring debt management, it is envisioned that municipal borrowing processes will be tied to specific criteria. The preparation of medium- and long-term programs for existing debt burdens is also on the agenda.

Furthermore, new measures are being considered to ensure that the share of personnel expenses within the budget does not exceed the 30-40 percent band.

TENDER PROCESSES AND REVENUE DEDUCTIONS

The draft regulation aims to increase transparency in tender processes. In this context, it is planned to make practices more open and traceable.

On the other hand, a model for deducting municipalities' SGK premium debts at the source is also among the topics being evaluated.

DIVISION OF AUTHORITY AND ADMINISTRATIVE STRUCTURE

The draft envisions a re-evaluation of the division of duties and authority between metropolitan municipalities and district municipalities. In this framework, the aim is to make the areas of responsibility between local governments clearer.

EMPHASIS ON ZONING AND PUBLIC LOSS

Binding zoning changes to stricter rules is also among the regulations included in the draft. Additionally, the study contains provisions regarding holding administrators liable in the event of public loss.

Regularly sharing municipal expenditures with the public is also among the envisioned practices.

CALENDAR NOT YET CLEAR

There is no clear date regarding the legislative calendar for the draft. However, it is stated that the regulation could come to the agenda before the Grand National Assembly of Turkey goes on recess in July.

News Source: 12punto