Assessment of fiscal policies in the realization of economic growth and development: The example of Turkey after 1980

After 1980, Turkey foreign exchange bottleneck in the development strategy of import substitution industrialization to overcome the fixed exchange rate system, have passed into the development strategy of export-oriented industrialization with the floating exchange rate system. However, while the application of the expanding fiscal policy is more effective in the development period by industrialization of the import substitute in the fixed exchange rate system, industrialization aimed at exportation in the free exchange system and lost its effectiveness in the development period with the liberation of capital movements. Because of the open budget policy and increasing interest rates and foreign trade deficits, domestic and foreign debt stock has increased even more. After 2002, budget reform, increased effectiveness of the tax system and fiscal discipline through privatizations, reduced public borrowing requirements and reduced interest rates. In this period, the tight fiscal policy has had an asymmetrical effect and positively affected the capital. According to statistical data, Turkey's economy in the period between the years 1923-1952 as a fiscal policy tool he uses a balanced butget has grown faster. The lowest rate of growth in Republican history (except for World War II) is the period between 1990-2001 when budget deficits are the highest. The average growth rate, which was % 5,5 between 1923-1979, decreased by % 4,9 between 1924-2012. Between 2003-2017, the average growth rate of the economy is about % 5,5. For these reason, the flexible exchange rate system should be budgeted instead of the open budget as the fiscal policy. Turkey's development plan that also aims at increasing inability to raise the average growth rate of the three mainreasons the budget deficit policy interest rate, to be dependent on imported inputs increase of production and export-import coverage ratio is low. With the withdrawal of the state from the economy after 2002, the small and equal budgetary policy will create an economic environment that will positively affect private investments and exports at low interest and tax rates. The foreign exchange bottleneck, which restricts the investment increse promoted by fiscal policy, can be overcome by the internalization of technology. So that the process of transformation to information society targeted at the Ninth and Tenth Development Plans will also accelerate. For this reason, it is proposed to use a fiscal policy that promotes human capital and innovation and technology investments that increase infrastructure spending within the framework of equivalent budgetary policy, which will ensure the success of knowledge-based innovative industrialization strategy based on selected new technologies to sustain rapid growth.