FISCAL RULES: AN ASSESSMENT OF PRACTICES IN TURKEY

Abstract

Author(s): Mehtap KARAYAZI

The practices of discretionary fiscal policies, in the 1930s when Keynesian thought prevailed, has led to an increase in public spending over time as a result of open-ended policies. The budget deficits and the public debt burden, along with increased spending, have led to a debate on rule based fiscal policies as an alternative, especially after the 1970s. Fiscal rules, defined as restrictions on the summary indicators of financial performance in order to ensure fiscal discipline, have been implicitly applied in the context of IMF programs in Turkey and in various legal regulations. Particularly in the post-2000 period, reforms in the context of public administration reforms and fiscal policy implementations based on tight fiscal discipline have resulted in significant improvements in Turkey's fiscal indicators.

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