Foundations as a Mechanism for Providing Public Goods and Services in Ottoman Finance

Foundations were very important institutions within the Ottoman financial structure. Funding for fully public and semi-public goods, for which the state did not spend directly, was provided by foundations. It is known that education, health, and social transfer expenditures are made through foundations with administrative freedom, decentralization, and production capabilities. The purpose of this study is to investigate whether foundations, historically an important institution in Ottoman finance, can be used as an alternative financing model to address budget deficits in public finance by increasing their traditional functions. The methodological dimension of the study was aimed at creating original content by scanning documents, statistical information, and literature. When the findings were examined, it was determined that there were movable and immovable foundations that had survived through the Seljuk-Ottoman tradition to the present day. Many foundations have been observed that have brought social benefit to the most optimal levels, from education to improving income distribution. In the context of the study's results, when data on current public expenditures are examined, public expenditures in the fields of education and healthcare are indeed on an increasing trend. Foundations can be considered as an alternative financing model, especially for countries experiencing chronic budget deficits.