SUSTAINABILITY OF BUDGET DEFICIT WITHIN THE FRAMEWORK OF INTERTEMPORAL EXTERNAL BALANCE APPROACHES IN TURKEY

In this study sustainability of budget deficit in turkey was analysed by using three different model with the data of 1987:m1-2013:m2 periods. in models, it was tested by using central government real budget revenues and central government real budget expenditures (including interest payments) series with johansen co-integration method. in the analysis, 1987:m1-2013:m2 period was searched as two sub-terms and full term in order to see the effects of “the new economic stability program”. as a result, it was determined that the budget deficit in turkey in 1987-2001 periods was sustainable in very weak-form, in 2001-2013 periods was sustainable in strongform and in 1987-2013 periods was sustainable in weak-form.