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Public Finance

Turkish Administrative Law is based on the "administrative" procedure techniques as in French Administrative Law. Some provisions relevant to the Administrative Law of the Republic period have also been included in the Constitutions.

According to the Turkish Constitution, the regional organization of the "Central Administration" is made according to the "Provincial System". The number of provinces remained at 67 for years and increased to 80 by 1997. The legal basis of the provincial system being applied in Turkey today is the "Provincial Administration Law" of 1949. Here, the organi- zation of the central administration in the provinces, in accordance with the Constitution of 1924, has been made in accordance with the provincial system, and a system has been formed envisaging the administration of the provinces according the principle of the scope of authority.

Public institutions and organizations in the provinces were organized predominantly as departments connected to the general budget up until 1949. As a result of the amendments made in subsequent years, the organizations with supplementary budgets and the State Economic Enterprises (SEEs) have become very important.

The expenses incurred by the public sector in Turkey are functionally divided into three main categories: These are "Expenses for General Administration Services", including administration, representation, legislation, security, judicial, and defense expenses; "Expenses for the Services Providing Welfare", made with the objective of meeting directly the needs of citizens such as education, health, social security and housing; and expenses for the "Services with Economic Attributes", which include the agricultural, industrial and service sectors and infrastructural investments and are aimed at offering direct or indirect benefits to companies in the market rather than providing direct benefits to citizens.