International financial institutions and fiscal reform suggestions: Turkey experience

In the Turkey Economy, from 1980 to recently, in scope of stabilization andstructural adjustment programs which applied with leadership of international financialinstitutions, wide comprehensive fiscal reform has suggested. The main purpose ofthese suggestions is decreasing of government sector share in the economy. With theseperspectives, as a dependent to aim of balancing public deficit, firstly, share of personaland investment expenditures, agricultural supports, like education and health socialexpenditures in public budget put under restraint. In addition to these precautions, inview of rising public revenue objective, precaution for increasing tax revenue andprivatizing put into practice. However, because of these reform suggestions has notachievement to decreasing share of government sector share in the economy andbalancing of public budget, domestic debt stock has increased each year. In 1999stabilization program and extended part of this program, in addition to reformsuggestions, various institutional adjustments began to work. Independentadministrative authorities have constituted and in order to decreasing long lastinginflation, in 2001, some precaution has builded for increasing independence of CentralBank of Turkey Republic. In recent period, adjustment has done in space of publicfiscal organization is also extension of these reform suggestions.Keywords: International Fiscal Institutions, Fiscal Reform Suggestion, TurkeyEconomy, Balance of Public Sector, Institutional Adjustments.