Res.Asst. Dr. C. Kemal Can’s article on the financial fragility in Turkey titled “How vulnerable is the fiscal posture in Turkey?” was published in Green Finance journal of Web of Science.
The analysis based on the financial fragility index included in CAN’s study revealed that Turkey’s financial performance was chiefly satisfactory for the forecast period. On the other hand, the author states that the causality test results in the study show a unidirectional causality from the required primary balance to the real primary balance, which in turn shows that the government uses the primary surplus to balance the fiscal imbalances, and in this way, the government performs an affirmative action to restore fiscal sustainability. However, in the study, it was pointed out that despite the implementation of corrective fiscal measures to maintain stability, the steady rise of the index value in recent years increases the risk of fragility, which in turn plays an impeding role in terms of sustainable growth and economic development. Spending cuts, full-fledged tax reform, proper scrutiny of public spending, and back-loading fiscal adjustments were included in the study as the leading policy options that the government could use to change the ongoing negative trend in the fiscal fragility index.