Restructuring of public financial management in Turkey

The most important reason for the existence of the state is to produce public goods and services. The salient input for producing public-related services are tax revenues. The public fiscal administration, which gained importance with the macroeconomic policies and the discipline public fiscal policy emerging particularly after the Great Depression in 1929, underwent remarkable qualitative changes throughout the 20th Century. As for our country, the state started devolving its duties to the private sector with the economic liberalization period especially after `80s, and also its policies for public finance changed. The most concrete example of this is the act on Public Fiscal Administration and Control enacted in 2003 and numbered 5018, which remarkably changed taxation policy and its instruments. The object of this study is to examine the aforementioned general change with a specific regard to the Turkish case, and to present a comparative perspective, taking account into the former act.