Efforts Towards Creating Fiscal Space to Ensure Effective Allocation of Public Resources in Turkey

Increasing responsibilities of public sector make it imperative to offer suggestions for the financing problem. The fiscal space at the beginning of these proposals refers to the capacity to generate financial resources in accordance with the macroeconomic plans of an entity, without harming its fiscal sustainability. The fiscal space emerges as a concept that aims to increase public income. This study is important as it examines the significance of creating a fiscal space for efficient allocation of public resources in Turkey, aiming to explain the concept of fiscal space, describing suggestions of international institutions and showing the developments in Turkish economy. We offer a general assessment on the utilization of the financial resources after the creation of the fiscal space in Turkey. Efforts to establish the fiscal space have been positive. Accordingly, it is seen that interest expenditures are reduced and financial area is created