Abstract

This study provides an analysis on the course of private savings in Turkish economy, which are consideredto be the primary source of sustainable growth and development. It also discusses the way how growthmodel adopted by Turkey regulates the relationship between Public Expenditure, Taxes and Private Sav-ings. Based on the results obtained from this analysis, it has been concluded that ever expanding publicsector has a negative impact on private savings. As a long term solution, modifying or replacing the cur-rent growth model has been offered. As a short term offer, there is need to regulate the revenues andexpenditures of all public institutions including the Central Government Budget with the support of thelegislative authorities to eliminate the negative impact in question.