Abstract:

Fiscal policies implemented from the 1930s to the 1970s resulted in increased unemployment and inflation. After the 1970s, it causing the Keynesian understanding to be questioned. The excessive growth of the duties and functions of the state and the unlimited power and authority held by those who administer the state have led to the failure of the state to fulfill what is expected from it, in other words, to the failure of the state. Applied discretionary fiscal policies also fueled the failure. Constitutional economics is that individuals have economic rights and freedoms by limiting the rights and powers of the state. In the 1980s, constitutional economics gained prominence and many solutions to state failure were proposed. One of these solution proposals has been financial rules. The reason why fiscal rules are included in constitutional economics is that no restrictions can be made in public administration without basing it on laws. The unsustainable public debt dynamics being effective in the rapid inclusion of fiscal rules in public financial management, and even not allowing public borrowing except for investments has been described as the "golden rule". With fiscal rules, it is aimed to limit the expenditure, income, budget and borrowing powers of the state and to ensure fiscal discipline. Although the way of implementation varies according to the economic situation of the countries, the limitation of expenditure, income, budget and borrowing powers is known as fiscal rules. In order to ensure fiscal discipline and efficiency in public administration in Turkey, many regulations and practices similar to fiscal rules have been implemented since the 2000s. In this context, in this study, the failure of the state and its reasons will be mentioned and the applicability of the fiscal rules in Turkey will be tried to be evaluated.

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