Economic Crisis and Budget Policies in Turkey: A Comparative Analysis in Terms of Fiscal Sustainability (1980-2018)

Abstract

The existence of political instability until 2000 led to the failure to implement the state-owned enterprise's privatization program and targeted development policies. The expansion of economic liberalization policies in Turkey has led to an increase in financial fragility. After the banking crisis occurred in 2001, IMF-based stability policies were implemented. Financial sustainability and discipline were ensured by the trust of global financial institutions and investors in economic policies between2003-2008. The reasons and consequences of the global economic crisis in 2008 were focused on the effects of the crisis on Turkey, and as the effects of the crisis continued, the debt crisis in Europe slowed the flow of capital with the effect to Turkey in 2010. Fiscal policy implementations in Turkey from 2009 to 2018 will be evaluated on the effects of economic growth, inflation, and unemployment on the economy by considering public revenues, public expenditures, and short-term external debt data based on budget policies.

The existence of political instability until 2000 led to the failure to implement the state-owned enterprise's privatization program and targeted development policies. The expansion of economic liberalization policies in Turkey has led to an increase in financial fragility. After the banking crisis occurred in 2001, IMF-based stability policies were implemented. Financial sustainability and discipline were ensured by the trust of global financial institutions and investors in economic policies between2003-2008. The reasons and consequences of the global economic crisis in 2008 were focused on the effects of the crisis on Turkey, and as the effects of the crisis continued, the debt crisis in Europe slowed the flow of capital with the effect to Turkey in 2010. Fiscal policy implementations in Turkey from 2009 to 2018 will be evaluated on the effects of economic growth, inflation, and unemployment on the economy by considering public revenues, public expenditures, and short-term external debt data based on budget policies.