"Transparency is a matter of mentality. We have realized this revolution of mentality," he said in a press conference in the capital Ankara on Wednesday as he presented the "Package of Transparency in Public Administration."
The transparency initiative was agreed upon at Tuesday's Council of Ministers meeting.
The prime minister stated that financing of the political parties and their election campaigns would become more transparent.
"Financial aid and donations for MP or mayoral candidates will be deposited in private bank accounts that can be monitored online by all," he said.
Davutoglu noted that the amount of donations and resources and the manner in which the money is spent will be divulged online after elections.
"The expenditures will be subjected to inspection and any improper and undue (spending) will receive an administrative fine," he added.
The premier maintained that political parties would also have to declare their financial resources and election balance sheets online, prior to elections.
Transparency will also concern those working in the public administration.
"All who perform a public duty will have an obligation to make an online declaration of property," said Davutoglu.
He stressed that political party chairmen, their provincial and district heads along with those of national or regional broadcasting - TV and radio - stations will also be obliged to declare their assets.
"Supreme Court heads and members will also have to make a declaration of property to the Office of the Turkish Parliament Speaker," he said.
The declaration of property will be made every two years.
The premier also added that special efforts would be made for informants who report corruption.
"In order to protect the public officers who report graft or bribery, we will enable them to work at different positions temporarily or permanently or take paid leaves for up to three months," he said.
The reported public authority will not be able to be involved in performance repraisal or evaluation for the informant, according to the latest ammendment.
"The informant public officer can be awarded providing that the notice is not proved unfounded," he added. "But unfair and baseless notices will receive harsh punitive sanctions in line with the legislation."