BUDGET DEFICITS , THEIR ROLES IN THE ECONOMIC CRISES AND THE EFFECTIVENESS OF STABILIZATION PROGRAMS (IN CASE OF TURKEY AFTER 1990?S)

Abstract

Economic crises frequently experienced in Turkey cause increases in budget deficit and as these deficits cannot be closed they bring new crises. So, the ?stabilization programs? that tried to be implemented during crises become quite important. In this study, the effectiveness of stabilization programs in closing budget deficit implemented during crises in Turkey, has been analyzed. Especially it has been investigated that why some stabilization programs failed while others succeeded in closing the budget deficits emerged by the beginning of 1990s and reached its peak in 2000s. Also crises in 1994, 2000 and 2001 which substantially damaged economic balance in the period after 1990 and lastly the impact of 2008 global crisis have been researched. Success of stabilization programs in closing budget deficit, which were implemented during these crises, stabilization measurements in 5th April, inflation reduction program in 2000, transition to strong economy program in 2001 and urgent action plan in 2002, were tried to understand through actual budget figures and economic data.