Effects of changes in budget expense policies in Turkey on basic macroekonomic equilibrium

The public services, which are needed to be provided in order to both for rendering expected duties and survival of the state, necessitate the public expenditure. With the help of budgets, permission is given and authority is delegated to the government, for the allocation place and amount of expenses. Types, amounts and regulations made on composition of public expenditure, which is one of the tools used for reaching determined macroeconomic goals by fiscal policy, which is also a branch of general economy policy, are take place in the budget. In this respect, one can state that "the fiscal policy is performed via state's budget mainly".What is important is the issue of limits, amount and allocation of these expenses due by the state. The policies to be followed had been discussed by economical approaches and as a result of this, different economical perspectives had been arisen. With the change and increase of economic and social functions of the state, an intervening, regulatory, incentive and stabilizing government understanding had became dominant. The public expenditure take place in the states' budgets, in addition to their classical financial objectives, they are prepared and implemented by concerning economic and social objectives.By this way, budgets are emerging as an important and efficient instrument of public finance, in realization of economical and social policies. And within the scope of realization of short and long term economical objectives of expense composition, which will be emerged with performed regulations on public expenditure: The budget expense policies to be applied are very important in order to reach fundamental macro targets such as providing economical stability, establishing the economical growth and regulating the resources and the distribution of income, and also to make the effects of macro indicators, which will be emerged, positive. In the study, it is aimed to present how the effects of expenditure policies' role arise, and also to present expenditure policies, which are emerged as a result of adjustments on types, amount and compositions of expense items, performed within objectives and obligations in the budget, since the budget is more than a simple text of law or a tabular statement, has an important role on basic macro balances.In the study, evaluation of effects of budget expenditure policies towards basic macroeconomic objectives had been performed, and an analysis on orthodox and heterodox stability policies, within the scope, and on budget expenditure policies had been presented. Other than this, the budget target and application results, applied in Turkey in 2003-2007 period, had been tried to be presented with its general terms by making use of sources obtained via literature search, and the subjects needed to make the study be understood as possible as can be in a macro level had been mentioned as necessary. And application results of budget expenses had been evaluated in consolidated budget / central administration budget, as indicators of economic growth, inflation, employment, balance of payments and state debts.