The Role and Importance of Budget Transfer Expenditures in Inflationary Periods in Türkiye
Chapter from the book:
Ayyıldız,
Y.
&
Demirli,
Y.
&
Şahin,
S.
(eds.)
2024.
Inflation and Public Finance (Theory-Policy-Practice).
Synopsis
Inflation, which expresses a continuous and noticeable increase in the general level of prices, is expressed as a policy issue that needs to be combated due to the social, political and economic effects it creates. The negative impact of inflation, especially on purchasing power, often necessitates a social state intervention. At this point, transfer expenditures come to the fore as a fiscal policy tool. In this study, the bilateral interaction between transfer expenditures and inflation is discussed. In this context, transfer expenditures and inflation are explained in detail in theoretical terms and the structure of transfer expenditures and inflation in Turkey is explained. As a result, it has been concluded that the impact of transfer expenditures on inflation should be constantly monitored in line with the social, political and economic structure of the country in connection with the national and international conjunctural structure, and the policies to be established should be evaluated within this context. Fighting inflation, which has become one of the targets of economic policies for Türkiye, has become one of the basic elements of fiscal policies. In this context, careful and effective use of social transfer expenditures, in a way that does not cause inflationary effects, is important for maintaining economic stability.