Introduction
Public expenditures, as an instrument of fiscal policy, are important expenditure instruments in the production of goods and services of the state. Every state that generates public revenue, as required by the power of the purse, reveals a social benefit by making public expenditures in various fields, providing employment, investing and providing services with the authority vested by the nation.
However, during extraordinary periods (war, disaster, epidemic, etc.), public expenditures are rapidly increased regardless of financial constraints in the short term, and it is aimed to ensure the security of citizens and properties. This is accepted as a possible trend by the fiscal theory, as public spending increases in similar ways during past extraordinary periods. With the Peacock-Wiseman Displacement Hypothesis, this is accepted by the detection of the increasing public spending tendency during the war periods. A similar situation was experienced with the 2008 Global Financial Crisis and a successful policy was followed by shortening the impact and duration of the crisis with public expenditure instruments in many countries.With the COVID-19 Outbreak in 2020, many countries have started to use various spending packages to continue the fight with emergency additional budget plans and to maintain the continuity of the economy. It is also predicted that the COVID-19 Outbreak Crisis reveals negative externality and that public expenditure instruments are the most efficient means to compensate and reduce the resulting costs. On the other hand, it does not seem correct to assume that this situation is temporary. After the epidemic, many countries (including developed countries) that want to strengthen their health service delivery infrastructure need to invest through public spending on a budget basis.
The COVID-19 pandemic crisis has greatly affected the twenty-first-century society and economy. The aim of the study is to compensate for missing information and contribute to the literature in the short term, accompanied by economic and financial evaluations. On the other hand, the study emphasizes that public expenditure instruments are saviors contrary to the neo-classical view and are very important in terms of transformation-sustainability. Finally, the study aims to evaluate the displacement effect in public expenditures, which is the most important tool in the hands of the public sector during natural disasters, wars and finally epidemics.
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