In this study, sustainability of budget deficits in Turkey is examined empirically for the period from January 2006 to September 2020, using time series techniques based on monthly
data, under the intertemporal budget constraint approach. In the analysis phase, the Johansen
cointegration method was used for the long-term relationship of the series. Analysis results
indicated that income and expenditure series are not cointegrated. It is concluded that
budget policies for the period under consideration in Turkey are unsustainable; therefore,
the applied fiscal policies should be reviewed.
Keywords: Budget deficit, sustainability, intertemporal budget constraint, Turkey
JEL Classification: H30, H50, H60