Legal analysis of public fiscal administration system from the perspective of Turkish Budget Law

There has been a legal reform in our country for years. Fical management is also a part of this reform works. ?Fiscal management Reform?, ?Reform in Public Spenditure?, ?Budget Reform? are the terms used to describe these efforts. In this context there has been an acceleration in this proces and with the EU membeship process, IMF treaties the reform has almost been completed.Turkish fical management system had been regulated by the General Accounting Code, which was enacted in 1927, number 1050 untill the enactment of Public Fiscal Management and Control Code. There has benn very few amendments in this code since today and it?s stil the basic code. That code was called ?the constitution of fiscal legislation?.The most important critics to our fiscal management system can be listed as follows:- Since 1927, there has been very important changes in fiscal management, public authorities and administrative structure. However code nr. 1050, our fiscal management system are not compatible with this system. On the other hand the global changes and developments in fiscal managements system couldn?t be reflected to our system.- Scope of our fiscal management system and budgeting is quite narrow. There are several budget structures in Turkey such as consolidated budget, general budget etc. It?s not possible to say that all budget types are regulated by law. As a result of this each budget has it?s own structure and application method.- Extra budgetary spenditure has increased due to extra budgetary funds, task costs, semi-fiscal transaction etc.- There is no connection between development plans and budgets anymore. Budgets are so far from the targets. As a result of this budgets are not a strategical decisions anymore.- Public sources are not used efficiently and effectively. Legislative legitimacy comes before effectivity and efficiency.- Sprenditure period is subject to rigid controls. This causes both waste of time and leads administrative authorities to extra budgetary resources.- Budget system lacks the structure to present the spenditure results, resources, funds to public, admistrative authorities and decision bodies.- Accounting system does not have a structure to present correct and efficient information to administrative authorities, decision makers and society.- Public income and sprenditure can not be auditted effectively. Audition scope Court of Auditors is so narrow.- Authority- Respoibility balance is not correctly established in public spenditure procedure.- Local administrative authorities do not have any initiative in budget preperation, application and control preiod.- Main principles of modern fiscal management system: strategical planning, perfromance based budgeting, multi-year budgeting, responsibility, fiscal transparency, efficient internal control are not a part of our system.These deficiencies mentioned above are also discussed in development plans, government programmes and urgent activity plan. These precautions are suggested:- all public spenditure should be covered bey the general budget,- budgeting should based on medium-term perspectives,- resources should be allocated according to strategical priorities and should be used efficiently,- fiscal tranparency mechanisms should be developped,- there must be reporting and accounting standarts,- politic and administrative responsibility should be defined and the mechanism should be based on these definitions,- audition shouldn?t be restricted,- performance audition is necessary,After the efforts made on our fiscal system, Public Fiscal Management and Control Code is enacted in compatible with the international standarts and General Accountign Code is abolished.Public Fiscal Management and Control Code aims to;- Provide budget unity- Establish a connection between development plans and budgets- Establish a good working audition system- Establish the balanca between authority and liability balance in spenditure process- Develop an effective internal fiscal audition system- Obtain an acceptance on strategical planning, perfromance based budgeting, multi-year budgeting, responsibility, fiscal transparency, efficient internal control principlesPublic Fiscal Management and Control Code brings very important chenges to our fiscal administration and audition system in accordance with the EU and international standarts. Legal aspect of these changes made it obligatory to comment the code on legal side. This dissertation ?Legal Analysis of Public Fiscal Administration System From the Perspective of Turkish Budget Law? has this aim. This dissertation discusses the general principles, law making technique of this code.