Public revenues and expenditures to GDP ratio Public debt and %GDP, date of repayment Structure of public sector – Central and Local gov., agencies Budget revenues and their structure Budget expenditures and their structure Types of taxes (i.e. real estate tax) Budget process Budget presentation (classification)

2. Contents
 Public revenues and expenditures to GDP ratio
 Public debt and %GDP, date of repayment
 Structure of public sector – Central and Local gov.,
agencies
 Budget revenues and their structure
 Budget expenditures and their structure
 Types of taxes (i.e. real estate tax)
 Budget process
 Budget presentation (classification)
 Current issues in public finance

3. Short Characteristics of Turkey
Population :83,654,256
Capital : Ankara
Bordered Countries: Bulgaria, Greece, Georgia, Armenia,
Iran, Azerbaijani, Iraq and Syria.
Currency : Turkish lira _ tl
Centre of Finance : Istanbul

4. Public Expenditures
Public expenditure is spending made by the government of a
country on collective needs and wants such as pension, provision and
infrastructure.
Government spending or expenditure includes all government
consumption, investment, and transfer payments. In national income
accounting the acquisition by governments, of goods and services for
current use, to directly satisfy the individual or collective needs of the
community, is classed as government final consumption expenditure.
Intended to create future benefit such as
 infrastructure investment
 research spending
Government spending can be financed by government borrowing or taxes.

5. 2004 2005 2006 2007 2008 2009 2010
Expenditures 27 24,3 23,1 23,7 23,9 28,2 25,8
1-Non-interest
expenditures 16,9 17,3 17 18 18,6 22,6 21
a-Personnel expenses 4,5 4,5 4,5 4,6 5,1 5,9 5,9
b-State Social Security Institute
premiums
0,6 0,6 0,6 0,6 0,7 0,8 1
c-Purchases of Goods and Service 2,1 2,1 2,2 2,3 2,6 3,1 2,1
d-Current Transfers 7,6 7,9 7,2 8,2 7,4 9,7 9,6
e-Capital Expenditures 1,2 1,3 1,3 1,3 1,9 2,1 1,5
f-Capital Transfers 0,3 0,4 0,6 0,6 0,3 0,5 0,4
g-Lending 0,5 0,5 0,6 0,3 0,5 0,6 0,5
2-Interest Expenditures 10,1 7 6,1 5,8 5,3 5,6 4,9
Public Expenditures to GDP

6. Public Revenues to GDP
2004 2005 2006 2007 2008 2009 2010
General Budget
Revenues
21,6 23,1 22,3 22 21,5 22 22,6
Tax Revenues
18 18,4 18,1 18,1 17,7 18,1 19
Non-Tax Revenue
3,6 4,7 4,2 3,9 3,8 3,9 3,5
Non-Tax Revenue is the recurring income earned by the government from sources
other than taxes.
In the broad sense, non-tax revenues are state revenues derived from socialist
enterprises.
Examples Include :
Received on loands given by the government to other states
Revenues from sales state assets (privatization)
Revenues from natural resources.

7. Public Debt to GDP ratio

9. Public debt
TL-denominated and foreign currency

10. (Million $) 2006 2007 2008 2009 2010 2011
Greece 106,1 107,4 113 129,4 145 165,3
Italy 106,1 103,1 105,7 116 118,6 120,1
Portugal 69,3 68,3 71,6 83,1 93,3 107,8
France 63,7 64,2 68,2 79,2 82,3 85,5
England 43,4 44,4 54,8 69,6 79,6 85,7
Germany 68,1 65,2 66,7 74,4 83 81,2
Spain 39,7 36,3 40,2 53,9 61,2 68,5
Turkey 46,5 39,9 40 46,1 42,4 39,2

11. Public Debt Resources
Internal – Resources
Commercial Banks
Central Banks
External – Resources
 Foreign Countries
 International Banks (Deutsche Bank,BNP--‐Paribas)
 Foreign capital markets
 International Instutions (IMF)

12. Public Debt - IMF

13. Date of repayment
(Million $) 2002 2003 2004 2005 2006 2007 2008 2009
Total 129,523 144,092 160,980 169,732 207,593 249,386 277,669 271,140
Short term 16,424 23,013 32,205 38,283 42,616 43,134 50,447 52,030
a. Public sector 915 1,341 1,840 2,133 1,750 2,163 3,248 3,598
b. TCMB 1,655 2,860 3,287 2,763 2,563 2,282 1,874 1,776
c. Private sector 13,854 18,812 27,078 33,387 38,303 38,689 45,325 46,656
Long Term 113,099 121,079 128,775 131,449 164,977 206,252 227,222 219,110
a. Public sector 63,619 69,503 73,828 68,278 69,837 71,361 75,037 79,856
b. TCMB 20,348 21,513 18,123 12,662 13,115 13,519 12,192 11,529
c. Private sector 29,133 30,063 36,824 50,508 82,025 121,371 139,993 127,725

14. Structure Of Public Sector in Turkey
Public sector statistics covers the central government
budget institutions, local governments, social security
institutions, the general health-care insurance, extra budgetary
funds, revolving funds, the Unemployment Insurance Fund and
SEEs.
 Central Government
 Local Government
 Social Security
 State Economic Enterprises
 Funding Agencies
 Other Institutions and Organizations

15.  Local governments balance is composed of special provincial
administrations, municipalities, urban based local government unions,
utilities of the metropolitan municipalities and İlbank accounts.
 Social security institutions comprise Social Security Institution,
Turkish Employment Organization and Unemployment Insurance
Fund. Only the investments of Turkish Employment Organization are
included into the social security institutions' balance, and the balance
of Unemployment Insurance Fund is monitored separately.
 The coverage of extra-budgetary funds balance includes; Support
and Price Stabilization Fund, Social Aid and Solidarity Incentive Fund,
Defense Industry Support Fund, and Privatization Fund.

16. Functional classification Share in the Budget
General Public Services 121.215.472 30,0
Defense Services 20.420.041 5,1
Public Order and Security
Services
28.750.664 7,1
Economic Affairs and Services 51.189.704 12,7
Environmental protection
services
532.440 0,1
Housing and Social Welfare
Services
6.244.295 1,5
Health Services 18.043.828 4,5
Recreation, Culture and
Religion Services
7.794.772 1,9
Education Services 63.510.828 15,7
Social Security and Social
Assistance
86.343.625
21,4
Budget Expenditures Total 404.045.669 100,0
Budget Expenses ( Functional classification)

17. Budget Revenues
(TL) K Distribution
Budget Revenues 389.681.985
General Budget Revenues 375.563.758
Tax Revenues 326.169.164
Enterprises and Ownership Revenues
14.311.681
Receieved Grants and Aids and Special
Revenues
1.095.571
Interest, Shares, and Fines 23.651.345
Capital Income 10.105.296
Receivable Collections 230.701
Self Revenues of Special Budget
Administrations
11.445.166
Revenues of Regulatory and
Supervisory Authority
2.673.061

18. Types Of Taxes
2004 2005 2006 2007 2008 2009 2010
Tax Revenues 83,2 79,9 81,2 82,3 82,3 82,3 85,3
Taxes over Income
and Earnings
26,3 24,4 23,7 26,0 26,9 27 24,8
Taxes taken over the
property
1,3 1,8 1,8 2 2 2,2 2,1
Goods and sevices
taxes
36,1 35,2 35,1 34,2 32,9 34,9 37,2
Taxes taken from
International trade
15,6 14,6 16,3 15,6 16,1 13,7 16
Stamp taxes 1,8 1,7 1,9 2 1,9 2 2,1
Mortars 2,1 2,2 2,3 2,6 2,5 2,3 2,8
non-tax
16,8 20,1 18,8 17,7 17,5 17,5 14,6

19. BUDGET CLASSIFICATION
Budgets; ensuring price stability in the economy,improving income
distribution,used fort he realization of the most important financial goals such
as the promotion of investment one of the tools.
1) CORPORATE CLASSIFICATION
Corporate classification,management authority has been recognized as
the main criteria.
 I.Ministries and budget types are formed on the basic.
 II.Level against the manager directly responsibles.
 III.Responsible units about implement of these policies.
 IV.Logistics and Support Units are located.
2) FUNCTİONAL CLASSIFICATION
Monitoring along the time series of state activities and the opportumity
to obtain an internacıonal comparison,ıts possible just by functional
classificatıons.
 I.First level is divided into ten main functionsnof state activities.
 II.These functıons are divided into sub functıons in this level.
 III.This level shows to final services.
 IV.Its determined to meet the planning needs in this level.

20. 3)FINANCING TYPE CLASSIFICATIONS
Financing type classifications,which is financed from the resources
spending ıt shows.This classificatıon determining the type of payment doesnt
matter where the points made it.
4)ECONOMIC CLASSIFICATION
With the economic classficatıons,state of while performing their duties
and functıons the activities carried out by the national economy,the markets
and effects of income distrubution planning,monitoring and evaluation is
planned.
a)EXPENDİTURE CLASSIFICATION
 Current Expenditures
 Capital Expenditures
 Lending and Repayment
b)THE ECONOMIC CLASSIFICATION OF INCOME-FINANCING
 Incomes basing any financial mutural rights or unpaid collectıons are made.
 Financing , in order to meet the states clear financing,in return for their
obligations,ıts payments and collections.

21. The Grand National Assembly of Turkey
1. Budget Bill: The budget bill foresees the revenues and expenditures of the
state for the next period and authorizes and permits the executive organ to
collect revenues and spending. The budget bill forecasts the expenditures and
revenues for the next fiscal year.
2. Enacting the Budget Bil: The Council of Ministers submits the budget bill
and a report indicating national budget estimates to the Grand National
Assembly of Turkey 75 days before the fiscal year.
BUDGET PROCESS

22. 3. Enacting the Final Account Bill
A final account is a mechanism that indicates the final state of
budgetary revenues and expenditure and gives an opportunity to
oversee the government. The budget of the previous year is finalized by
the Final Account Bill. By adopting the Final Account Bill, the
Assembly gives its consent to the performance of the government.