Abstract:

In Turkey, public sector gap and financing is a topic that has gained importance especially since the 1980s. In Turkey, as in the world, debt has become the most frequently applied method in the financing of public sector gap, domestic and external debt preference has gained importance in the context of debt management. In the 1990s and the following period, the public debt burden has rapidly increased, but the nature of debt has seen differences in terms of periods. During the 1990s, the debt policy, which focused on domestic debt, especially from the middle of the 2000s, has moved to external financing through the private sector and the channel of the private sector. The study examined the development of the public financing balances in Turkey in the period 1990-2015 and the impact of debt policies on the public financing balances. The relationship between public gap and internal and external debt has been analyzed by Granger causality tests and a bilateral causality relationship has been identified.    Keywords: Public Finance, Internal Debt, External Debt, Public Section Debt Requirements: