Tax revenues and debt in Turkey as the ordinary and extraordinary income

Public revenues are an important tool for the development of countries. The state must ensure the economic balance between public expenditures and public revenues to ensure development. Among public revenues, taxes provide the most revenue. In cases where economic balance cannot be achieved, borrowing is preferred. Borrowing is known as an extraordinary income within public revenues, but today it has become ordinary. The most well-known difference between taxes and debts is that taxes are mandatory, while borrowing is voluntary. Today, borrowing has begun to resemble taxes and is taken not only in extraordinary situations but also to maintain economic balance. In this study, tax revenues and borrowing were discussed and the data between 2000 and 2021 were examined and their decreasing and increasing tendencies in line with the problems experienced in that period, and in the last part of the study, a cointegration test was performed between tax revenues and borrowing revenues. As a result of the cointegration test, it was determined that there was a directly proportional relationship between tax revenues and borrowing. Then, tax revenues and external borrowing, tax revenues and domestic borrowing were analyzed. As a result, no cointegration was found between tax revenues and domestic borrowing, but a relationship was detected between external borrowing, which is the dependent variable, and tax revenues. Keywords: Turkish Tax System, Indirect Taxes, Direct Taxes, Public Borrowing, External Borrowing, Domestic Borrowing, Co-Integration