This presentation by Hakan Ay, Turkey, was made at the 10th Meeting of CESEE Senior Budget Officials held in Den Haag on 26-27 June 2014. Find more information at http://www.oecd.org/gov/budgeting/10thannualmeetingofseniorbudgetofficialsfromcentraleasternandsoutheasterneuropeanceseecountries.htm

1. BUDGET REFORM
in
TURKEY
Hakan AY
Deputy Director General
DG Budget and Fiscal Control
MoF, Turkey

2. o PFMC Reform in Turkey
o Transparency Mechanism
o Reform Agenda
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AGENDA

3. 3
PFMC REFORM -1
o 2001: Say2000i System (e-accounting)
o 2001: Independency of Central Bank
o 2002: Public Financing and Debt Management Law
o 2003: E-budget System
o 2003: Public Procurement Law
o 2003: Public Financial Management and Control Law

4. o 2004: New Budget Classification
o 2004: International Accounting Standards
o 2005: Restructuring of Revenue Administration
o 2006: Introduction of PFMC Law
o 2010: New TCA Law
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PFMC REFORM- 2

5. o MTEF
 Medium Term Program
 Medium Term Fiscal Plan
o Performance Based Budgeting
 Strategic Planning
o Internal Control & Internal Audit
5
o Medium Term Expenditure Framework

6. 6
Budget Coverage
oAbolishment of the Extra Budgetary Funds
oMunicipalities
oSocial security institutions
oRolling funds
oOther institutions

7. 7
Budget Code
oSimplification of Budget Law
oAbolishment of special appropriation&revenue system
oLimits on Treasury Guarentees and Debt Undertaken
oLimits on PPP

8. 8
Budget Code
oNumber of documents and reports attached to Budget
Law
Legal Ground Report
Annual Economic Report
Tax Expenditures Report
Debt Management Report
List of Public Institutions(outside the CGB) getting transfers
from the budget
Preceding two years’ budget realizations and upcoming
two years’ budget forecasts of general government
institutions
Budget projections of municipalities and social security
institutions

9. o Deadline for submission to Parliament
o Special Budget Institutions
o Supervisory and Regulatory Institutions
o List of Public Debts and Treasury Guarantees
o Relinquished claims by government
o Public movables management report
Final Accounts Coverage
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10. o Monthly Realization Reports
o Mid-Year Report
o General Accountability Report
o Unit Accountability Reports
o Local Administrations(Municipalities) General
Accountability Report
o Local Administrations(Municipalities) Accountability
Report
Reports
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11. o Extension of external audit scope
o New reports other than General Conformity Report;
Evaluation Report on General Accountability
Report
Evaluation Report on Fiscal statistics
Evaluation Report on External Audit
Court of Accounts
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12. o Transition to new program classification
o Citizen budget guideline
o Integrating FMI Systems
o Improving monitoring and evaluation systems
o Strengthening the Role of Parliamentary Budget Office12
REFORM AGENDA

13. Existing set-up
www.bumko.gov.tr
Pilot work
Citizen Budget Guideline
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14. Pilot Work
General Information
 Macroeconomic Evaluation
 Budget Expenditures
 Budget Revenues
 Budget Deficit
 Primary Surplus
 Debt Levels
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15. Pilot Work
Sectoral Explanation
Public Employment
Education
Universities
Health
Judiciary
Regional development projects
Social Security
Social Expenditures by type
Agriculture
R&D and Innovation
Environment
Local Administrations
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16. Thank you
For further information
www.bumko.gov.tr
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