Ottoman Budget Deficits Problem in Post Tanzimat Period and Fiscal Consolidation Measures

Akdemir T., Yesilyurt S.

MALIYE DERGISI, no.174, pp.240-269, 2018 (Journal Indexed in ESCI) identifier

  • Publication Type: Article / Article
  • Publication Date: 2018
  • Title of Journal : MALIYE DERGISI
  • Page Numbers: pp.240-269


While the Ottoman State had a sustainable financial structure until the 16th century, after this century, the budget balances deteriorated, and especially with the 19th century, the need for reform in the public finance became inevitable. In this context, despite the policies to reduce budget deficit established by income-and expenditure-based measures, it was not able to achieve reliable/sustainable levels in terms of budget deficits and debt accumulation. Budgetary deficits and debt accumulation maintained their existence as a major problem even in the last periods of Ottoman. The aim of this study is to explain the causes of budget deficits in the Ottoman Empire and to assess whether the policies applied to reduce budgetary deficits and to enhance prudent public finance were successful in addressing fiscal deteriorations in public financial structure.