Main questions of this study are “How much autonomy?” and “Has autonomy take to feudalism?” Although the resolution of issue according to effective, efficient, rational and fair principles about the income distribution between the central administration and the municipalities is a precondition of permanent and efficient services of local governments. This study aims to identify regional goverments tasks and improve services of central governments with taxes (VAT) distirbution method. We also aim toincrease taxes that are collected from regional governments with the method of glocalization. In addition, if sharing criteria was different, it would how a change between the years 2003-2011 will be investigated. During the comprehensive analysis of these years with public revenues on the basis of VAT, local government’s expenditure, criteria/data to be applied to the share of public revenues to municipalities whether changing the method financing of municipalities can make local governments more efficient and productive will be explored.In a political structure that municipalities are financed from the center, it is very difficult to find an appropriate combination of equality and justice in the distribution of income. Local governments must have privileges which are proportionate with responsibilities on own mandates and source of income for producing to serve as an effective and efficient local services. The results show that if the central governments give budget to regional government according to taxes that are collected in this region, the productivity of taxation increase and regional government can collect taxes easier
