Analysis of Turkish government budget system from a national culture perspective

The study aims to analyze the impact of national culture on the Turkish government budget system. This analysis is conducted within a historical framework that extends from the Ottoman Empire through the Republican era to the present day. The study examines in depth the impact of national cultural values on economic and political institutions and how this impact shapes budget systems. Initially, the study addresses the concept of national culture, providing information on national culture theories, dimensions, and approaches that enable intercultural comparisons. Subsequently, the influence of national culture on personality and people, institutions, law, democracy, economics, politics, attitudes towards the state, and trust in government is investigated. Finally, the effect of national culture on the government budget system is examined in detail. In the second section, in order to comprehensively examine the Turkish government budget system and compare it with other countries, a budget index was developed. The index named Budget Competence Index comprises dimensions such as budget transparency, participation in the budget process, accountability, budget control, perception of corruption, fiscal discipline, fiscal space, inclusiveness of the budget, and digitalization of the budget. In the third and final section, initially, to trace the cultural heritage behind the current characteristics and qualities of the Turkish government budget system, the economic, administrative, and fiscal structure of the Ottoman Empire and the post-Republican budget practices are scrutinized. Then, utilizing Geert Hofstede's national culture dimensions of individualism-collectivism power distance, an assessment of Turkey is conducted. Subsequently, an in-depth analysis of the Turkish state budget system is then performed using the Budget Competence Index. The study discusses the mediating role of institutions such as democracy and the rule of law, debating Turkey's position in terms of democracy and rule of law. Finally, the empirical part of the study, which reveals the direct impact of national culture on budget systems, along with the mediation analyses that consider the indirect effects of national culture, are shared. In conclusion, this study unveils how the Turkish government budget system is shaped under the influence of national culture and how this interaction plays a role in the reform processes. According to the study's findings, there is a significant relationship between the principles, rules, and values that are attempted to be integrated into the Turkish government budget system and national culture. The findings show that the individualism-collectivism national culture dimension has a positive effect on the budgeting process, while the power distance national culture dimension has a negative effect. Additionally, democracy and the rule of law also play roles as mediators to a certain extent in this significant relationship.