Evaluation of Municipal Economic Enterprises (ICT) in creating and efficient use of public resources

Abstract

Municipalities, which are public legal entities with financial and administrative autonomy, may establish companies in order to meet local common needs. Metropolitan Municipality Law No. 5216 s. 26 and Municipal Law No. 5393 s. 70 it gives municipalities the right and opportunity to establish companies in the fields of duties and services assigned to them.

BIT is the abbreviation of “Municipal Economic Enterprises”. It refers to the state of “Public Economic Enterprises” known as KIT’s at the level of local governments. While the ownership or partnership of the Treasury is mentioned in KIT’s, it is the ownership or partnership of the relevant local administration in BIT’s.

In this paper, while dealing with BITs and their relations with the municipalities they are affiliated with, the management of the public resources they create is also examined in terms of efficiency. For example, the tables based on financial performance are based on the years 2018 and 2021. This process is also the period of Covid-19, and the performances of municipalities and BITs in this process are given statistically at the end of the tables of each municipality. In the aforementioned statistics some interesting information and results were obtained.

With the total public resources created and used by IBB in 2021, it is more than the budgets of most ministries and is the second after our largest company EPİAŞ. With a total public resource of 104 billion TL created and managed by the five BBs we examined, they use public resources equal to 8% of Turkey’s budget revenues of 1.272 billion TL in 2021.

The total public resources of 1,391 municipalities and companies (BITs) are much higher than Turkey’s budget revenues.