Abstract:

The impact of the global economic crisis of 2008 was greatly experienced in Turkey especially by the real sector. Due to the decline in domestic and international demand, recession of the production potential and the pessimistic conditions in the expectations, Turkey produced a negative outlook in terms of macroeconomic indicators such as production, employment and exports during the crisis period. While the decline in the revenue side of the budged especially in tax related revenues, was being experienced due to the slowing economic activities and the drop in the production, the additional public expenditures, made in scope of the finance policies, led to an increase in the outlay of the budget. In parallel to the course of the macroeconomic indicators, while the severity of this negative outlook on the administrative budged were being felt mildly in 2008, the year, when the effects of the crisis was first got sight of, the severity was deepened greatly in 2009, when the crisis was experienced intensely and ultimately, the severity was greatly decreased in 2010, when the real sector began its recovery. In this study, in the years of 2008 and 2009, the effects of global financial crisis on Turkish central government budget expenditures has been explained

Keywords: