Effects of globalization on public finances and results uncovered in Turkish economy

The concept of globalization that expresses the increase in the degree of economic, political, socio-cultural developments affecting each other, since the last quarter 20th century, its economy dimensions have gained great acceleration. In particular, the development of information technologies, the collapse of the Bretton Woods System in 1971 and the arrangements were made by international economic-finansal organizations have led to a growing increase in the mobility of goods-services and capital. The expanding international trade capacity and international capital movements have changed the understanding of public finance around the world by requiring the design of economies and financial policy instruments in line with these developments. In the field of taxation, due to the increase in the cross-border mobility of the capital, it is a situation of narrowing at taxation authority of the nation state. In public expenditures, there are a change in accordance the interest payments are brought by excessive borrowing, the necessity of increasing efficient expenditures and the increasing need for the global public goods that provide the inter-generational benefit. Especially, 1973-79 Oil Crises, 2008 Global Economic Crisis and The Europe Dept Crisis as a result the countries that the budget and current transactions are more deficit with their borrowing costs have increased, the budget deficit, borrowing and and interest were wrapped. At this point, the limitations imposed on inefficient expenditures, the targeting of primary surplus, the lower-upper limits imposed on tax rates and also the borrowing limits thats will not lead to inflation and will enable rational dept management are first step for the financial discipline. In the public financial administration, the execution of activities within public knowledge and responsibility awareness and also provision of maximum output with existing resources are to fully allocate financial discipline and economic stability. In Turkey, was involved in these transformations by liberalization of the economy with 24th January 1980 Stability Decisions. The globalization of the economy was fully provided with the Law Numbered 32 which was adopted in 1989 and the Direct Foreign Investments Act Numbered 4875 which was accepted in 2003. Especially, the public financial understanding has changed in this direction for the success of the economic infrastructure works that has been undertaken to attrack goods-services and international foreign investments to Turkey. In order to attract capital and remain in the country with tax competition, the regulations made in the Corporate Tax Law Numbered 5220 are important so that the tax competition is not to reach harmful dimensions. Especially after the 1980s, the increase speculative capital entries that oriented to high interest and uncontrollably public expenditures have further disrupted current transactions and budget balance. Thereby, interest expenditures have taken over within total expenditures. In this context after the year 2000, targeting of primary surplus in 19. stand-by agreement, the Central Bank Act Numbered 1211 preventing inflation and also Law on Regulation Public Financing and Dept Management Numbered 4749 which envisioning the provision of rationality net dept use have a serious importance. Especially, structural and quantitative measures including Public Financial Managament and Control Law Numbered 5018 which bind the appropriations usage to the rules and constitute a serious reform in public financial understanding complete these arrangements and allocate financial discipline. Keywords: Globalization, Public Finances in the World and Turkey, Economic Crises after the year 1970, Financial Rules, Economy of Turkey, Fiscal Rules in Turkish Public Finance.