Constitutional balanced budget in maintaining fiscal discipline and Turkish case

Obtaining fiscal discipline in a country has great importance inachieving economic and fiscal policy aims, especially economic stabilizationpolicy aims. In considering public deficits as essential problems for the fiscaland economic structure of a country, also the dimensions of these deficitsgain importance. In practice various deficit measuring methods examining theefficiency of fiscal policy have been developed. In several developed anddeveloping countries, various fiscal rules have been implementing accordingto constitutional and legal regulations so as to decrease budget deficits andobtain fiscal discipline. One of these regulations is balanced budget rulewhich is the most controversial fiscal rule in both academic and politicalcommunities.?Constitution? is an order of rules regulating a state?s founding, andorganization, change of government and individual rights and freedom. InWestern countries the thought of integrating economic rules and institutionsin the constitution has gained great importance with the help of emerging anew inter-discipline called Constitutional Economics. Some countries? fiscalrules having been set in their constitutions so as to obtain and mantain fiscaldiscipline attract great attention. Fiscal rules obtaining fiscal discipline areimplemented by several international pacts as in European Union. In severalother countries important steps are taken in view of obtaining efficiency infiscal management and fiscal discipline by other legal regulations exceptconstitutional regulations.In Turkey especially after 1980?s period, dimensions of fiscal deficitshave enlarged continously and measures having been taken against thisinstability have been inadeqaate. In the last section of this study, basicreasons and dimensions of fiscal deficits in Turkish economy are examinedand legal framework in both before and after the establishment of Republic ofTurkey are discussed. In this section theorical arguments and empiricalstudies about budget rules and criticism on ?balanced budget rule? areexamined. Lastly, basic points on implementing of constitutional balancedbudget rule? -in which conditions this rule can be implemented- so as tosuggestions on public finance policies so as to form necessary conditions inthis respect are tried to be discussed.Key Words: 1)Budget Deficit, 2)Fiscal Rules, 3)Constitutional BalancedBudget, 4) Fiscal Discipline, 5) Balanced Budget Constraints