Conclusion

The COVID-19 Outbreak has created an economic and social impasse on a global scale. This impasse has been described as an unprecedented socio-economic crisis. On the other hand, much more destructive effects are predicted compared to the 2008 Global Economic Crisis.

COVID-19 Outbreak unexpectedly affected economic and social life negatively. However, it should not be forgotten that there are solution tools to eliminate the negativities. The first of these is the discovery of a vaccine that will solve the problem radically. However, this solution, which is not possible in the short term, brings up fiscal policies that will support economic and social life. In particular, it is necessary to establish an environment in which the market and households are supported by public expenditure instruments. Considering the decline in foreign capital investments, a leap in public expenditures rather than private sector expenditures is important for the economic and social order.

On the other hand, the increase in the spending tendency increases the income need and taxation and borrowing tendencies are also increasing. Although it is seen that borrowing tendencies increase in the short term, it can be observed that tax resistance decreases and tax revenues increase in the medium term to compensate costs. In this study where we discuss the efficiency of fiscal policy and country trends in the context of the Peacock-Wiseman Displacement Hypothesis, it is seen that the displacement hypothesis is valid in many countries. However, it does not seem possible to predict the public revenue-expenditure course after the COVID-19 Outbreak Crisis, which is considered a state of emergency. On the other hand, the studies that will emerge in the future (transition to the ordinary period) will be complementary to our related work.

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Melih Kabayel is a Ph.D. Candidate of Public Finance and Fiscal Management at Izmir Katip Celebi University, Institute of Social Sciences. Melih Kabayel received his BA from the Depart­ment of Public Finance, Celal Bayar University, Manisa, Turkey in 2013. He received M.D. in Public Finance with his thesis entitled as “Applicability of Obesity Taxes As Tool of Public Policy In Turkey and Selected Countries” from Izmir Katip Celebi University, Izmir, Turkey in 2017. His research focuses on fiscal theory, public goods theory, obesity taxes, international taxation, public debts, public expenditures, economic and fiscal crises, and Industry 4.0 with aspect of taxation. Ph.D. Candidate Melih Kabayel has authored and contributed to book chapters and articles on these research areas.

Alper Dojgan received his BA from the Department of Public Finance, Celal Bayar University, Manisa, Turkey in 2003. He received Ph.D. in Public Finance with his thesis entitled as “Gender Budgets: An Evaluation for Turkey” from Celal Bayar University, Manisa, Turkey in 2012. He presently serves as an associate professor at Izmir Katip ζ⅛lebi University, Faculty of Economics and Administrative Sciences, Izmir, Turkey. He was also a visiting fellow at the University of Utah, Salt Lake City, USA between 2009 and 2010. Dr. Dogan’s research interest includes Fiscal Theory, Gender Studies, Industry 4.0, International Taxation.