Budget Deficit Problem and its Impact on the TRNC Economy
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The Turkish Republic of Northern Cyprus(TRNC)is experiencing socio-economic structural problems that have been accumulated throughout the years since its establishment.The structural problems have led to the budget deficits that create a big burden on an economy.For, a budget is not only a legal document which specifies the public expenditures, revenues and public needs, but it is also an important tool in the realization of planned growth and socio-economic structure in a country. The aim of this study is to investigate the effects of budget deficits on the economy of the TRNC.The structures ...
The Turkish Republic of Northern Cyprus(TRNC)is experiencing socio-economic structural problems that have been accumulated throughout the years since its establishment.The structural problems have led to the budget deficits that create a big burden on an economy.For, a budget is not only a legal document which specifies the public expenditures, revenues and public needs, but it is also an important tool in the realization of planned growth and socio-economic structure in a country. The aim of this study is to investigate the effects of budget deficits on the economy of the TRNC.The structures of the budget and the public sector have been analyzed in a time perspective and the main problems concerning public finance of the country are identified.Factors creating the budget deficits and the methods used in financing these deficits in the TRNC have been discussed in detail. Theoretical concepts about financing the budget deficits and the effects that they create on an economy have been introduced and compared with the case in the TRNC.Through this study,some policy solutions for minimizing the negative effects of budget deficits on the TRNC economy have been suggested in brief.
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