Financial discipline within the frame of restructuring public finance administration in turkey

The loss of discipline in public finance of Turkey is the result of financial politics that were applied after 1980. The loss of discipline is viewed as a process resulting from use of Central Bank resources to finance the growing deficit of public sector, preferring domestic and external depts, decline of attachment to public income politics. The most important reason for the problem appears to be perpetual increase of public expenditure, tax burden and low tax income elasticity after 1980 in Turkey. Actualy, these politics can not told to cause any problem until 90?s. But the crisis in 1994, 2000 and 2001 showed that a reform in public financial administration is unavoidably compulsory. Our study is focused on maintaining financial discipline within the frame of restructuring public finance administration. Within this perspective, at the beginning, detailed information will be explained about the basic concepts needed to maintain financial discipline. The problematic applications in maintaining ?Financial Discipline? which is one of the most popular concept in our country lately, will be dealth with. In 2003, a law ?5018? was issued in order to maintain the financial discipline in our country. This study is going to discuss the sufficiency of this law within the perspective of maintaining financial discipline. Keywords: Public Finance Administration, Financial Reform, Budget Deficit, Financial Discipline, Financial Constitution.