Abstract:

Public deficits; occuring due to the inadequate raise of public revenue, is a fiscal indicator having a general tendency to increase from 1980 until today. Public deficits in Turkey mostly originated from the consolidated budget deficit in 1980-2012 period, nevertheless, the deficits of state owned enterprises and local governments, extraordinary events like earthquakes, political and economic crises have accelerated the factor.Even though the financial incentives implemented for alleviating the impacts of 2008 global crisis has increased the budget deficit in 2009 finally, with the support of the resurgence in domestic demand and Medium Term Fiscal Programme, the deficit showed a falling tendency. In order to reduce public deficits in Turkey, public expenditure velocity has to be decelerated and precautions increasing public revenue has to be augmented.

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