Comparing Public Finance Management in Turkey and the United States - A Comprehensive Analysis
Description
This paper provides a detailed examination of the public finance management (PFM) systems in Turkiye and the United States. It offers a comparative analysis of their fiscal governance models, focusing on the structural, operational, and strategic differences between the two systems. Key Aspects Covered in the Paper: 1. Fiscal Structure and Governance - Turkiye’s centralized system is shaped by the Presidential Strategy and Budget Directorate and emphasizes fiscal discipline and medium-term planning. - The U.S. follows a decentralized approach, allowing states significant fiscal autonomy, resulting in regional flexibility but disparities in service delivery. 2. Transparency and Accountability - Turkiye has improved its fiscal transparency through digital tax collection systems but faces challenges in public participation and procurement transparency. - The U.S. leads globally in transparency, supported by platforms like USAspending.gov and oversight institutions like the GAO and CBO. 3. Debt Management and Fiscal Health - Turkiy emaintains a relatively low debt-to-GDP ratio of 40% (2024) but faces external vulnerabilities due to foreign debt reliance. - The U.S. struggles with a growing national debt of $33 trillion (2025) and fiscal deficits driven by entitlement programs. 4. Strategic Planning - Turkiye employs the Medium-Term Program (MTP) to establish structured fiscal targets, focusing on inflation control and debt reduction. - The U.S. lacks a similar medium-term fiscal framework, relying instead on long-term projections by the CBO. 5. Public Participation - Public engagement in Turkiye is minimal, with limited avenues for citizen input in budgetary decisions. - The U.S. encourages citizen participation through public hearings and open budget platforms, fostering accountability. Methodology The study adopts a comparative analysis framework, utilizing publicly available data from sources like the Open Budget Survey, OECD, World Bank, and government portals such as USAspending.gov and the Presidential Strategy and Budget Directorate. Key Findings and Recommendations - For Turkiye: Enhancing transparency, decentralizing fiscal authority, and fostering public participation can strengthen its PFM system. - For the U.S.: Introducing medium-term fiscal planning frameworks and addressing regional inequities in fiscal performance are critical areas for improvement. - Both countries can benefit from mutual learning by adopting each other's strengths. The paper concludes by emphasizing the need for balanced fiscal discipline, transparency, and public participation to ensure efficient and equitable governance.