Structural Change of Municipal Public Finance: A Comparative Analysis Using Fiscal Data of All Municipalities (1995–2015)

Abstract

This study aims to examine the changes in the fiscal structure of all municipalities by analyzing fiscal data from 1995 to 2015. The results show that, first, the role of local allocation tax in total revenue has weakened over the study period. Second, the share of social welfare expenses in total expenditures has increased overall. Additionally, this share tends to be higher in urban municipalities. Third, urban municipalities increasingly tend to have limited fiscal flexibility and less fiscal leeway to implement discretionary policies.