An Evaluation of Subsidies Granted to the Private Educational Institutions Within the Framework of Turkish Taxation System

Abstract

One of the most essential concerns that governments have to deal with has been the theme of Economic growth and development. In order to be able to sustain the aforementioned objectives, states and governments instrumentalize fiscal policies in which subsidies occupy a substantial place. The basic rationale behind these fiscal policies including subsidies has been the allocation of resources to those fields with better and more efficient prospects within the general good of the economy. Despite convergences seen in terms of types and implementation of subsidies, the basic objective is to accomplish higher rates of economic growth and investment. By means of the Decision of the Council of Ministers of Turkish Republic dated June 19 th , 2012 investments to be handled for primary, secondary and high school educational institutions investments were evaluated within the framework of fifth region with the labeling of priority investment contend for the related educational investments. Along with the closure of private-mentoring facilities, the related facilities investors were foreseen to utilize the subsidies to convert these facilities to schools, thereby minimizing the costs of investments coupled with rises in investments. The effort of the study, given the given scope and framework, is to elucidate and to analyze arrangements and recent developments in regard to grants of space and location for investments and exceptions regarding the insurance and tax exceptions and exemption within a general framework of aforementioned subsidy program in Turkey for educational institutions.