Public expenditure reform immediately

Turkey’s current economic situation is characterized by challenges such as high inflation, current account deficit, external debt burden, and budget deficit. These challenges place pressure on public expenditures and increase the necessity of ensuring fiscal discipline. In such an economic environment, public expenditure reform is of critical importance to ensure fiscal sustainability and stabilize the economy. Without public expenditure reform, there can be no savings from public spending. The Court of Accounts must immediately begin performance auditing. For this reason, the Court of Accounts law must be amended. If performance auditing is not conducted, waste, corruption, and public loss cannot be prevented.

Current economic conditions show that public resources must be used without being wasted. Inefficient or unnecessary public expenditures must be identified and cuts must be made in these areas. 

Under current economic conditions, major public investments must be selected meticulously. Projects with high potential for growth and job creation should be prioritized, and resources should be distributed in a way that paves the way for investments that will contribute to the economy in the long term. 

Projects carried out in Turkey through the public-private partnership (PPP) model have created significant financial burdens. By conducting cost-benefit analyses of these projects, contracts that place a burden on the public and are unsustainable can be renegotiated. Especially since obligations in foreign currency place a heavy burden on public finance during periods of economic instability, these projects must be managed carefully.

While social assistance programs are important during periods of economic crisis, they must be targeted and efficient. To increase the effectiveness of social assistance in Turkey, those in need must be correctly identified and aid must be distributed transparently. Social assistance can be increased during periods of economic crisis, but the fiscal sustainability of this aid must be ensured.

The public procurement system must be reformed in terms of fiscal transparency and efficiency. To reduce the risks of corruption and waste in the current system, a transparent and competitive procurement process must be developed. By using digital platforms and ensuring public oversight in public tenders, it can be ensured that the state's expenditures are made in the most economically appropriate and efficient manner.

Tax exemptions and incentives lead to significant losses in public revenue. Under current economic conditions, the cost of such incentives must be re-evaluated and unnecessary tax expenditures must be limited. Especially by reviewing tax exemptions for high-income groups, an increase in public revenue can be achieved.

Turkey’s external debt burden and borrowing costs have increased. Therefore, limiting public borrowing and restructuring the existing debt structure can reduce the pressure on the budget. In particular, minimizing borrowing in foreign currency and focusing on domestic borrowing strategies can limit the impact of fluctuations in exchange rates.

In the face of Turkey’s current economic challenges, public expenditure reform is of critical importance for ensuring fiscal discipline, using public resources efficiently, and supporting sustainable development and growth. These reforms can support economic stability by ensuring that public expenditures are managed in a more transparent, efficient, and goal-oriented manner.

Prof. Dr. Duran BÜLBÜL