ANKARA- TEPAV pointed out the high local administration expenditures. According to TEPAV, local administration expenditures reached 30,7 billion YTL as of the end of September 2008. It was also mentioned that local administrations' budget deficit was recorded as 3,2 billion YTL and this amounted to a 138% increase in local administrations' budget deficit when compared to its September 2007 level.

The study by Assoc. Prof. H.Hakan YILMAZ of TEPAV Fiscal Monitoring Group reports that, purchases of goods and services (excluding health expenditures) by local administrations totaled to 90% of all purchases that are in the same context, and those local administrations exceeded their budgets in terms of capital expenses. The study claims that, with the fiscal power provided by the central budget, local administrations became an alternative budget in terms of public expenditures. It is also claimed that public resources used for justice, security, defense, education, health, and environment by central budget have now been shifted to local administrations. The study says:

"The opportunity cost of these policies is the forgone public services from the budget. This obviously results in acceleration of capital accumulation, which was altered by public resources.

On the other hand, the fact that local administrations use central government budget resources instead of their own for fiscal localization is a point that must be discussed thoroughly both in terms of distribution of roles and responsibilities between the central government and local administrations, and the prioritization of public services. It can also be said that local administrations becoming more center dependent in terms of resources has a negative effect on localization of local administrations in the medium term."