Public financing balance in Turkey and the importance of public economic enterprises (PEE) on public financing between 1990-2004 (Tekel example)

ABSTRACTPUBLIC FINANCING BALANCE IN TURKEY AND THE IMPORTANCEOF PUBLIC ECONOMIC ENTERPRSES (PEE) ON PUBLIC FINANCINGBETWEEN 1990-2004 (TEKEL EXAMPLE)TİRYAKİOĞLU, HasanM. A. Thesis, Department of Business AdministrationSupervisor: Assist. Prof. Dr. Mehmet CİVANJuly 2005, 190 pagesOne of the basic problems of Turkish economy is low savings and inabilityin transform the present saving to investment in general balance of economy. Thedeterioration of the balance among sources and utilization specially in the publiceconomy in favor of utilization, resulted in continuously increases in the resourceneed of public and budget deficit. Inability in fiscal discipline in public leading toincreases in budget deficit every past year, resulted in cumulative increment in thedemand for public debt. The continuous increase in the demand for publicborrowings caused to debt-interest vicious circle. The distotions in public financingbalance has been directed public to eliminate budget deficit into internal debt,external debt, central bank resources and privatization applications. For this reason,in this study, the balance of public financing was investigated. Internal and externalborrowings in financing budget deficit, insufficiency in central bank recourses,privatization of PEE?s in urgency and understanding away from state?s reality,among privatization applications especially TEKEL privatization was studied indetail. In this thesis, public economy and properties, definition of PEE?s,workspaces, their roles on economy and public financing, activities, income-expenditure, loses of function and relation with treasure were examined.Additionally, public financing analysis was performed for 1990-2004 years inTurkey economy. It was investigated the development of budget deficit andefficiency of methods followed in financing. Furthermore, the activities of KİT?s inpublic financing and their importance for privatization application were wellpronounced. Finally, it was anaylsed of activities of TEKEL AŞ. which was amember of PEE between 1990-2004, their income-expenditure, loses and profit,relation with budgets and current status in privatization process.Key words: Public financing, Public Economic Enterprises (PEE), PrivatizationTEKEL A.Ş.