Akademik Veri Yönetim Sistemi
Journal of Economic Research Foundation, cilt.2, sa.2, ss.77-108, 2025 (Hakemli Dergi)
The Covid-19 virus has continued to occupy the world agenda with its different and new variants since the beginning of 2020. The virus, which caused the death of millions of people, has created significant effects in many administrative, political, economic, financial, sociological and psychological aspects. This study aims to examine the effects of Covid-19 on the fiscal structure (income, expenditure and borrowing) of subnational governments. Accordingly, it has been concluded that Covid-19 does not create a standard financial impact on subnational governments, depending on many factors such as urban or rural area, capital, metropolitan areas, small or large municipalities, geographical location, places where economic activities are concentrated (central-local distribution of responsibilities), management structure, the existence of horizontal and vertical mechanisms for equalization and balancing and the financing structure of subnational governments. In other words, the “scissor effect” that occurs due to the decrease in income and increase in expenditures has been experienced to different degrees in each country. Regarding borrowing, information has been obtained that borrowing rules have been relaxed and total debts have increased in real terms, especially in countries with poor financial conditions.