The Turkish government has introduced new measures to cut public funds to municipalities and their subsidiaries to offset their outstanding debts, according to a presidential decree published in the Official Gazette on Wednesday.
The measures modify the framework governing deductions from municipalities’ share of central tax revenues, expanding the scope to include additional municipal subsidiaries and their legal entities. The changes also clarify the inclusion of district municipalities under metropolitan municipalities in the deduction process.
The decree, signed by President Recep Tayyip Erdoğan, has drawn strong criticism from opposition politicians who accuse the government of intensifying financial pressure on opposition-led municipalities with the aim of obstructing the services they offer.
The main opposition Republican People’s Party (CHP) Deputy Chairman Gökan Zeybek, who oversees the party’s local administrations, described the move as “unlawful” and “another blow” to municipalities by the president.
“The aim [of the government] is to drive municipalities into a major financial crisis. … What you are restricting is not the economic capacity of municipalities but the services they provide to the people,” he said on the social media platform X.
CUMHURBAŞKANLIĞI KARARIYLA BELEDİYELERE BİR DARBE DAHA İNDİRİLİYOR.
Resmi Gazetede yayımlanan Cumhurbaşkanı Kararı ile Büyükşehir Belediyeleri, İl Özel İdareleri, Belediyeler ve bunların bağlı kuruluşlarının borçlarına karşılık Genel Bütçe Vergi Gelirleri tahsilat toplamı… pic.twitter.com/jDzHc6JqG6
— Gökan Zeybek (@gokanzeybekCHP) November 27, 2024
The development comes amid mounting political pressure and financial restrictions on opposition municipalities by the Justice and Development Party (AKP) government thought by some to be designed to undermine their ability to provide services after the AKP’s electoral defeat in March.
In the March 31 local elections, the CHP emerged as the leading party for the first time in 47 years, securing 37.7 percent of the vote, maintaining control of key cities and securing substantial gains in other regions, while the AKP came in second, garnering only 35.4 percent.
The CHP’s election victory also led to concerns that Erdoğan might resort to measures that will hinder operations of the opposition municipalities or discredit them in the eyes of the public in retaliation for his party’s election loss.
The AKP government gave the first signs of its apparent intention to exert financial and judicial pressure on opposition-run municipalities when President Erdoğan announced in July that the finance ministry was working on a plan to collect debts owed by the municipalities.
The CHP accused him of trying to stage a “financial coup” against opposition municipalities.
Earlier this month, prosecutors also launched investigations of three municipalities run by the CHP mayors on accusations of irregular spending and unpaid debts to the government.