This book contains detailed studies in eight chapters on public finance in Turkey, covering taxation, incentives, health, and social policies. The topics covered in each chapter and the conclusions reached are summarized below.
1. Chapter — EVALUATION OF PUBLIC POLICIES FOR RETIREES IN TURKEY DURING THE DEMOGRAPHIC CHANGE PROCESS (Authors: Sabriye Nur Güngüneş, Alparslan Uğur). This chapter examines the impact of population aging on social security institutions. It states that the rapid increase in the number of elderly and retirees disrupts the actuarial balance of the social security system, leading to continuous reform initiatives. The deteriorating actuarial balance, on the one hand, increases the social security contributions of current employees, while on the other hand, it leads to lower pension payments by reducing the pension accrual rates. The study lists recommendations for implementing various public policies, primarily exemptions and immunities to be included in tax laws, to eliminate the welfare losses caused by this situation and to improve the quality of life of retirees.
2. Chapter — FINANCIAL EXTERNAL DEPENDENCY IN THE AXIS OF GLOBALIZATION: EXTERNAL BORROWING (Authors: Nermin Yalçın, Aslı Yenipazarlı). This chapter includes evaluations on how the globalization process affects the relationship between financial external dependency and external borrowing. The study states that globalization increases the free movement of capital and strengthens economic and financial ties between countries; it also deepens interdependence and borrowing tendencies. It is stated that external borrowing, which is one of the most important tools of this dependency relationship, is a matter that needs to be carried out with extreme meticulousness, and if not directed to productive areas, it can negatively affect economic growth and cause deterioration in the financial structure.
3. Chapter — FISCAL BALANCE AND PUBLIC DEBT IN TURKEY IN THE CONTEXT OF GLOBAL CRISES: PUBLIC FINANCE INDICATORS (Authors: Muhammed Taylan Yavuzer, Elyasa Aksoy).
This chapter comparatively examines the economic fragilities experienced by Turkey during the 2008 global financial crisis and the 2020 Covid-19 pandemic, and the reflections of these processes on public finance. In this study, which analyzes with IMF’s WEO data, it is stated that the Turkish economy was exposed to rapid and severe shocks during both crisis periods, and it is emphasized that expansionary fiscal policies were implemented during crisis periods, and policies aimed at re-establishing fiscal discipline were implemented during recovery periods. The conclusion reached in the study with the existing findings is that Turkey needs both revenue-enhancing and expenditure-quality-improving reforms to maintain fiscal sustainability in the long run.
4. Chapter — TRANSFORMATION OF PROCUREMENT PROCESSES IN PUBLIC HOSPITALS: THE STATE SUPPLY OFFICE MODEL (Authors: Ayşe Erinç Ergen, Ahmet Özen). This chapter, which addresses the transformation of procurement processes in public hospitals within the framework of the State Supply Office (DMO) model, evaluates the DMO model from the perspectives of New Public Management, Agency Theory, Economies of Scale, and Public Value Theory from a theoretical point of view. This study, which approaches public procurement processes not only from a cost-oriented perspective but also from managerial, ethical, and strategic dimensions from an academic perspective, includes guiding evaluations for Turkey through international application examples. The conclusion reached by the study through both literature reviews and international case analyses is that central procurement models offer significant advantages in terms of cost-effectiveness, transparency, and accountability in public services.
5. Chapter — THE IMPACT OF INVESTMENT INCENTIVES ON EMPLOYMENT: A RESEARCH IN THE CONTEXT OF TURKEY (Authors: Hüseyin Kutbay, Murat Atakan Parmaksız). This chapter,It was prepared to empirically demonstrate the relationship between investment incentives and employment and to evaluate the effectiveness of policy implementations in this area. In this study, which evaluated the effect of investment incentives implemented in Turkey on employment with econometric analysis, it was concluded that investment incentives have negative effects on employment, and in some cases, technological investments reduce labor demand. It was stated that incentive policies should be restructured by considering their sectoral and social effects based on the results obtained.
6. Chapter — STRUCTURAL EVALUATION OF LAW NO. 5018 ON PUBLIC FINANCIAL MANAGEMENT AND CONTROL ON BUDGETING AND EXPENDITURE PROCESSES (Authors: Mine Gür, Cevat Tosun). This chapter examines the effects of Law No. 5018 on Public Financial Management and Control on the public budgeting system, expenditure processes, and financial management approach in Turkey. It is emphasized that this law, which introduced new practices such as multi-year budgeting, accrual-based accounting, performance-based budgeting, program budgeting, strategic planning, and analytical budget classification, has made significant contributions to modern public financial management, but some adaptation problems persist in practice, especially in the areas of performance-based budgeting and program budgeting. It is stated that regulations to be made in these areas will further develop this change process.
7. Chapter — LEGAL AND FINANCIAL FRAMEWORK OF PUBLIC EXPENDITURES FOR THE DISABLED IN TURKEY (Authors: Şaban Ertekin). This chapter discusses the types and legal basis of public expenditures for disabled individuals, stating that disabled individuals face multidimensional disadvantages in social and economic life, and states have important roles in eliminating these disadvantages. The study provides a comparative analysis of public expenditures for disabled individuals in OECD and EU countries and Turkey. It is stated that rules eliminating discrimination should be implemented in all legal and administrative regulations regarding disability in line with international norms. One of the main recommendations of the study is to allocate more financial resources to practices that facilitate the participation of disabled people in social and economic life within the framework of social state responsibility.
8. Chapter — NON-TAX COMPETITION AFTER GLOBAL MINIMUM CORPORATE TAX: NEW INCENTIVE DYNAMICS (Authors: Elyasa Aksoy, Muhammed Taylan Yavuzer). This chapter states that the operation of Multinational Enterprises (MNEs) in different countries creates problems such as tax loss, base erosion, and profit shifting, and efforts have been made to combat these problems for more than thirty years. The emergence process of the Global Minimum Corporate Tax (GMCT) initiative, one of the latest regulations in this struggle, and the basic framework of the GloBE rules; evaluations are made on the extent to which different types of incentives may be affected by this new regulation. The study argues that the global minimum corporate tax reform has weakened the traditional form of tax competition; on the other hand, it has initiated a new era in which the nature, scope, and financial structure of incentives are re-evaluated.