Public financial management system: Public Financial Management Law of 5018 to bring innovation

Today, public financial system consists of government revenues, expenditures and budget. İn the historical process and for the beginning, the taxes were collected from immovables as well as the soil ant terrain. Time after time, this had started to become even more complex just after management systems were changed by industrialization. Then administrators or government's tend to taxation of wealth and spendings and also arbitrary taxes, resulted understanding of administration, the principle of transparency in spending has taken its place in the first row under the name of 'financial transparency'. The demands of determining the amount of the state revenues and how it's collected has created a need to create new financial system. İn our country, which is being implemented since the early years of the Republic, General Accounting, Law No. 1050 could not respond to needs any longer as a result of diversification of public expenditures and become even more complex. When it comes to 2000's. The need of founding a new financial system began to be necessary more than ever. Also by the European Union's influence, firstly, the part of No. 2886 State Procurement Law which was being applied for public sending on public spaces has been replaced with No. 4734 Public Procurement Law. Afterwards, the financial system has totally changed by the enactment of 5018 Public Financial Management and Control Law. The fiscal transparency imparted both in principally and usage form of public resources, responsibility of accountability of public institutions and public officials, performance-based budgeting and multi-year budgeting system which has been brought on budget management by No. 5018 Public Financial Management and Control Law have made public spending and control can be more planned and controlled. Keywords:Public Financial Management System, Financial Transparency,Performance-Based Budgeting, İnternal Control, External Audit.