Turkish opposition CHP criticizes new presidential decree cutting municipal budgets

Turkish main opposition CHP has condemned a presidential decree that would decrease funds allocated to municipalities from the national budget. Deputy Chair Gökan Zeybek called the regulation unlawful, accusing the government of hindering municipalities and harming public services.

Mayors Ekrem İmamoğlu (L) and Mansur Yavaş (R) of the main opposition CHP appear together in this image.

Duvar English

A presidential decree published in Turkey’s Official Gazette on Nov. 27, amends the allocation of state budgets for metropolitan and provincial municipalities, and their affiliated institutions.

The main opposition Republican People’s Party (CHP) Deputy Chair Gökan Zeybek issued a written statement regarding the decree titled "Another coup to municipalities via Presidential Decrees."

He emphasized that the amendment allowed deductions from the municipal budget shares due to the debts of municipal companies.

The new regulation expanded “legal entity” to include companies directly or indirectly owned by municipalities. As a result, the funds allocated to municipalities will be deducted to cover the debts of these municipal companies, Zeybek stated.

He argued that the regulation violated various codes including the Turkish Commercial Code.

“Most of the municipal companies are joint-stock companies,” Zeybek said. “The Turkish Commercial Code defines a joint-stock company as a type of entity with a specified capital divided into shares, where only the company itself is liable for its debts with its assets. Shareholders are liable only for the capital they have committed and only to the company.”

“This liability is defined by law, and it is legally impossible to remove it through a presidential decree. Such a move violates the principle of legal hierarchy,” he added.

Zeybek accused the government of trying to hinder municipalities and deprive citizens of essential services. “It is clear that you will continue to oppress the people. However, CHP municipalities have always overcome such challenges and will continue to do so,” he concluded.

 

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Topics municipal spending CHP budget presidential decree Official Gazette