Abstract:
Ensuring justice in income distribution is among the most important duties of the social state. The state carries out this duty through taxes and transfer expenditures, which are two important instruments of fiscal policy. In the study, the effect of taxes and public current transfer expenditures on income distribution in Türkiye in the period 1999-2023 was examined with the ARDL bounds test approach. According to the estimation results, it was seen that indirect and direct taxes significantly positively affected the Gini coefficient in the long term, while it was determined that current transfer expenditures did not have a statistically significant effect on income distribution. The short-term estimation results were also parallel to the long-term estimation results. According to the long-term estimation results of the model, it was determined that a 1% increase in indirect taxes increased the Gini coefficient by 0,14%, and a 1% increase in direct taxes increased the Gini coefficient by 0,47%.

Keywords: Income Distribution, Indirect Taxes, Direct Taxes, Transfer Expenditures

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