Abstract:
Together with the global financial crisis, the increased economic
uncertainty in Turkey is seen to have negatively affected trust and
forward-planning. During the global crisis, Turkey's economy
contracted and its national budget was negatively affected. Due to the
overall decline in growth, tax reductions were enacted to support the
real sector, which in turn decreased public revenues and quickly
increased the administration's budget deficit. To reduce the effects of
the crisis, some areas of spending were increased, as well. As a result
of these developments, the budget deficit and treasury debt load ratio
increased past the previously projected levels.