Akademik Veri Yönetim Sistemi
Journal of Modern Turkish History, cilt.17, sa.34, ss.741-773, 2021 (ESCI, Scopus, TRDizin)
Owing to the clauses of the Treaty of Lausanne and the economic structure inherited from the Ottoman Empire, the only tool that would steer economic policies in the period of 1923-1929 was the balanced budget policy. Balanced budget policy had been successfully implemented since 1926. Until 1927, infrastructure, especially transportation investments, had been tried to be made adhering to the balanced budget principle. However, after 1927, there was a change of direction in the financing of these investments without deviating from the balanced budget principle. This study focuses on how infrastructure investments were made in the period of 1923-1929 by adhering to the balanced budget policy. During this period, methods such as foreign borrowing and long-term domestic borrowing were not used. Instead, domestic borrowing was chosen by committing the budget revenues in the future periods, by issuing treasury bills and by the surety of some public institutions to borrow from banks. As a result, infrastructure investments have been tried to be realized by going beyond the balanced budget policy with these methods. This study contributes to the limited number of public borrowing literature for the relevant period. This study was conducted on the basis of budgets, final budgets, laws concerning the examined borrowings and the minutes of meeting of the Turkish Grand National Assembly regarding such laws.