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Reforming Turkey's Public Expenditure Management

  • Rauf Gönenç
  • Willi Leibfritz
  • Erdal Yilmaz

Fiscal imbalances were a main cause for chronic high inflation and macroeconomic instability before the 2000/2001 crisis. Fiscal consolidation is the cornerstone of post-crisis stabilization. It has been quite successful over the past three years as sizeable primary surpluses have been sustained and the fall in interest rates has reduced the interest cost of public debt. Fiscal targets have been achieved chiefly by raising revenues which has increased the tax burden; greater emphasis should now be placed on the control of public expenditure. At the same time, core public services such as education, justice, infrastructure and rural development will need to be upgraded. Social security costs may also rise with the planned shift to universal health insurance, and the ambitious administrative decentralization project could cause upward pressure on local spending. Far-reaching rationalization of public expenditures is therefore required to meet the quantitative fiscal targets while ... Réformer la gestion des dépenses budgétaires en Turquie Les déséquilibres fiscaux ont été une cause majeure de l’inflation forte et de l’instabilité macroéconomique avant la crise de 2000/2001. La consolidation budgétaire a été au cœur de la stabilisation après la crise. Elle a été mise en œuvre depuis trois ans avec des excédents primaires larges, et la baisse des taux d’intérêt a réduit le coût du service de la dette publique. Les objectifs budgétaires ont été atteints principalement par une hausse des revenus, augmentant la pression fiscale, et plus d’attention devra être accordée à l’avenir au contrôle des dépenses. En même temps des services publics majeurs comme l’éducation, la justice, les infrastructures et le développement rural devront être améliorés. Les dépenses de sécurité sociale pourraient aussi augmenter avec le passage annoncé à la couverture médicale universelle, et l’ambitieux projet de décentralisation administrative pourrait accroître les dépenses locales. Une forte rationalisation des dépenses devient donc ...

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Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 418.

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Date of creation: 10 Feb 2005
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Handle: RePEc:oec:ecoaaa:418-en
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