Moving from the functional classification of public spending explaining the relationship between economic growth and public expenditure in Turkey from the perspective of Keynesian view and Wagner's Law

For Turkey's economy in this working within the scope of functional classification, the causality relationship between the expenditure items representing the first level activities of public administrations within the scope of central government included in the tables (I), (II) and (III) attached to the Public Financial Management and Control Law and the Gross Domestic Product (GDP) is analyzed using quarterly data of 2006:Q1-2019:Q4. In the first part of the study public expenditures concept, classification of public expenditures, some views explaining the increase in public expenditures are mentioned. In second part information is given on public spending and the course of economic growth in Turkey and past studies on the subject are mentioned. At the application stage, the unit root grades of the series are first examined by Augmented Dickey Fuller (ADF) test and Phillips Perron test. According to the results of unit root test, it is observed that while GDP includes first-order unit root, some of the public expenditure series do not contain unit root and some of them contain first-order unit root. Then, the causality relationship between them is examined with the Todo-Yamamoto causality test and one-way causality is found from Gross Domestic Product (SLRGDP) to Environmental Protection Services (SLRÇKH), Recreation, Culture and Religious Services (SLRDKDH), Education Services (SLREH), Settlement and Community Welfare Services (SLRITRH), Health Services (SLRSH), Defense Services (SLRSVH) variables and from Public Order Security Services (SLRKDGH) variable to Gross Domestic Product (SLRGDP) variable.