As a public finance instrument in Turkey domestic borrowing

When states cannot meet their public financing needs from budget revenues, they resort to borrowing as an alternative. Borrowing is generally divided into two domestic and foreign borrowing. Domestic borrowing is preferred when the financing source for public financing needs such as budget deficits or strategic investments cannot be met from external borrowing or when the choice of foreign borrowing is not strategic in terms of its contribution to the country. Therefore, domestic borrowing, used as a public financing instrument in Turkey, is significant for the state. In particular, due to the increasing exchange rate increases in recent years, domestic borrowing in Turkey has been preferred more in terms of borrowing costs. Domestic borrowing is also preferred within the fiscal or monetary policy framework of the budget deficit. In the first part of the study, the reasons for domestic borrowing used as a public finance instrument in Turkey, the concept and scope of public borrowing, the classification of public borrowing, sources of public borrowing, theoretical approaches to public borrowing policies, and public financing methods are mentioned. In the second part, the development of domestic borrowing, which has been used as a public financing instrument in Turkey from 1980 to the present, is examined, and the management and targets of public domestic borrowing, domestic borrowing methods in Turkey, domestic borrowing instruments, and empirical studies are discussed. In the third part, an analysis has been made of the economic effects of domestic borrowing, which is used as a public financing instrument in Turkey.