Abstract:

Today, with the process of globalization, the sustainability of the economic and political structure of the state organization has become critically important. For years traditional and alternative measurement methods of fiscal deficit have been used to determine the sustainability of the public economy. In this study, the fiscal deficit of Turkish economy between 2000 and 2014, as well as its effect on macroeconomic indicators have been analysed. In this study, first the theoretical framework of fiscal deficits is analysed. Then in light of the published statistical data, graphics were created to investigate the yearly developments in fiscal deficits. İn the graphics, the changes that might be caused by the sudden increase and decreases have been assessed and the deficits in the Turkish economy have been compared to 14 other countries. The study concludes with the finding that fiscal deficit is an economical problem that can be encountered from time to time, and structural reforms can be considered an effective solution. In addition, the study has found that the impact of the fiscal deficit increases rapidly when fiscal deficit occur simultaneously with economical and political instability.

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