THE IMPACT OF SCALE ON THE PERFORMANCE OF MUNICIPAL BUDGETS IN TRNC

The budget performance of the municipalities in the Turkish Republic of Northern Cyprus (TRNC) was examined in this study. In this framework, the legislation and the current implementation of the budgetary processes of the municipalities together with the projected and realized budget figures especially for the year of 2015 were examined. Firstly, municipalities do not provide pre-budget plans and programs although they are required by the law of municipalities due to the absence of authorized supervisory institutions. In addition, there is no legal or institutional structure that would allow preparation of prepared budgets in accordance with certain principles and principles that are required for all other public institutions. As a result of lack of institutional and professional structure, there is a gap between projected and actual budget figures. Furthermore, the unsustainable financial structures of the municipalities are in the need of state contributions that can potentially threaten their autonomy. Almost half of the municipal revenues is devoted to staff expenses and hence they face difficulty of raising funds for investments that are essential for the improvement of the quality of life. As a conclusive remarks, administrative, legal, institutional and supervisory measures should be taken in order to improve the budget performance of the municipalities