A Theoretical Overview of Developments in Financial Sustainability Analysis Methods

Abstract

Today, the structure of economic activities has led to the diversification of the risks that countries face in their fiscal policy. As a matter of fact, while the economic relations between countries, from foreign trade to finance, become much more intense, they articulate the economies to each other; facilitated the spread of instability to other countries. On the other hand, the increase in borrowing opportunities and resources due to financial liberalization and the increase in transaction volume has increased the financing opportunities of economic agents other than the public sector as well as the public sector, and this has made the private sector balance sheets important in terms of public finance. By means of like these developments, approaches have emerged in financial sustainability analysis, and in this context, the analyzes have become increasingly risk-based. In this study, the transformation and analysis methods in fiscal sustainability analyzes are examined.