Performance based budgeting system and applicability in Turkey

In the budgets forthcoming income and expenditures of a state are estimated. The state budgets prepared, applied and resulted in order. When public targets and in parallel to them the fiscal policies are limited, the budget systems were formed relatively more restricted. But, together with increasing public needs, the fact that using public sources more effectively has become more significant made budgeting systems more complicated. Therefore, several modern budgeting systems are applied. The last stage among theses systems is Performance Based Budgeting System.The aim of this study is to show why performance based budgeting system which is one of modern budgeting systems, is needed by analyzing the development of budgeting systems and to determine how to use the system in Turkey. On account of this fact, in the thesis the theoretical background of performance based budgeting system has been given. After that, how the system is tried to be applied in different countries has been studied and several results have been obtained for Turkey. In the last section of the study, the basic reasons to adapt the new budgeting system in Turkey and the attempts to apply this system have been analyzed. An analysis has been made in order to determine the level of application of performance based budgeting system in Turkey. With the help of the data obtained from the so called analysis in thesis, some concrete suggestions have been made about the matter of how performance based budgeting system can be applied effectively in all public institutions.