The economic relation between public revenue and public expenditure: A modal of Turkey after 1980

Living together, which is one of the necessities of social life, brought along providing the needs of the masses. In this context, state's expenditures so as to fulfill the requirements of the society are referred to as "public expenditures" in the literature. Fundamental demands of the society such as security, health and education are compensated through public expenditures. Either the state or through the private sector, these requirements may be ensured. Public services could be offered by choosing the one appropriate among the methods of provided services to the private sector. However, whether or not the service is properly performed, is under the control of the public administration. Regardless of whom ensures the services required by the society, resources will be needed to realize these services. This source is generated through public revenues. The state has abundant sources of income; mainly taxes collected based on its sovereign power. These sources of income are generally examined by being subject to various classifications. Alike the income sources, expenditures are also subject to differentiation according to their features and benefits. The state realizes public expenditures such as transfer expenses for elderly, sick and disabled individuals who should be subject to positive discrimination in social life due to its statehood and public expenditures to ensure social justice. Studies aimed at explaining the expenditures made by the public power in accordance with the requirements of community life have an important place in the fiscal literature. In this study, not only the economic data, but also the political and and social conditions of the world during the research period were taken into consideration. According to the Granger Causality Test Results; on the one hand, it is found a bidirectional causality in budget revenues with the central government budget expenditures, personnel expenses, purchases of goods and services expenditures; on the other hand, it is found one-way causality from general budget revenues to current transfers, in Turkey's economy. In our study, it is mainly focused on the economic relations between public revenues and public expenditures after the period of 80's.