The government revenues and government expenditures are widely used as a means of public finance and eliminating budget deficits. However a change in the level of government expenditures or government revenues will create different effects on the economy depending on the relationship between the aggregates in question. The aim of this study is to exhibit the relationship between government expenditures and government revenues for Turkey in order to serve to determine the favorable policy. For

more »

... at purpose, the relationship is tested by using Central Government Budget Revenue Realization and Central Government Budget Expenditure series from the Republic of Turkey Ministry of Finance with 2006 January -2015 April monthly data. In addition, by employing government revenues and expenditures in a disaggregated manner, the relationships about general government revenues, the revenues of regulatory and supervisory foundations, the revenues of private budgeted foundations, interest payments and non-interest payments are tried to be presented. Granger causality test is preferred as we have stationary series and also as this methodology is reliable, simple and widely used in literature.