The Effects of Globalization on Turkish Public Financial Management and Budget Process

Abstract

The effects of globalization in the economic, political, and social life have deeply changed the roles of states, and in this process of change, the new management approach has become a current issue within public financial management. Some important principles such as fiscal transparency, accountability, efficiency, effectiveness, and economy have been given importance in the public sector, and middle-terms budgeting, strategic planning, performance management, performance indicators, annual reports, analytical budget classification have become to be implemented in the performance-based budgeting system. The authors have examined the innovations by globalization in the Turkish public sector and analysed the effects of changes with the adoption of Law No: 5018 in terms of Turkish public financial management. It has been mandatory that all Turkish administrations under the general government take attention to the regulations accepted in Law No: 5018. When evaluated from a positive perspective, public administrations in Turkey have got more managerial responsibility in their operations.