Türkiye faces the highest budget deficit in its history

According to the international group Tasnim News Agency, Erdogan’s new cabinet is slowly turning one year old. But the economic crisis in Türkiye continues and the US dollar has not dropped below 32 liras. This is despite the fact that in May of last year, Erdoğan had promised to bring the dollar below 20 lira if he won the vote of confidence of the people. and put the people of Turkey in trouble and now, Erdogan’s party, which fell to the rank of the second party in Turkey for the first time, is faced with the largest budget deficit in the history of the republic.

Cash deficit of 570.2 billion liras in the Turkish economy is a figure behind every It shakes the economic expert. Of course, this is the figure recorded by the Ministry of Treasury in the first three months of 2024, and it is not unlikely that by the end of this year, the situation in the Turkish market will worsen from what it is.

Analysts say that Shimshak’s He knows his job, but Erdoğan has delayed the implementation of strict financial policies and the implementation of the economic austerity approach, and this issue has brought negative consequences.

Meanwhile, Suzjo newspaper is the most widely printed newspaper in Ankara. In a special report, he announced that the municipalities under the Justice and Development Party did not abandon extravagance in 2023, and in several provinces, huge buildings were built for the municipality, which are very luxurious and aristocratic and living examples of waste and waste. They are considered a waste.

This newspaper announced that the construction of the Turkish presidential palace in Beştepe, Ankara, with 1,200 rooms, has become a model for other institutions to spend extravagance.

Now is not the time, leave it for after the elections
In the past few months, Turkish Economy Minister Mehmet Şimşek has repeatedly asked Erdogan , allow to apply the policy of economic austerity. But he announced that the implementation of the strict economy should only be implemented when the government and the ruling party are not caught up in the elections. Now that the elections have been held and the ruling party has experienced an unprecedented defeat, Little by little, the economic team of the government prepares the people to hear the bad news and tells them: a huge budget deficit is coming. Fasten your seat belts for economic austerity.

Turkey’s liquidity deficit, which reached 570 billion and 252 million lira in the first quarter of 2024, has increased by 121.1% compared to the same period last year, putting pressure on economic balances. enters This situation indicates that the budget deficit will increase further in the rest of the year.

Foreign investors, maybe another time
One of the reasons for Erdoğan’s insistence on returning Mehmet Şimşek from Wall Street to Turkey and entrusting him with the helm of the Turkish economy was to understand the fact that Şimşek has extensive relations with the financial markets of New York, London and Doha, and in addition to America, England and Qatar bring investors from several other countries to Turkey. However, at least in the first year of his presidency, such an event did not happen and European and Arab investors did not follow the path of Turkey, and now this country has turned to the World Bank to receive foreign exchange resources.

The World Bank is a cooperation program announced the new Country Cooperation Framework (CPF) to support Turkey’s economic growth and development goals, which has a 4-year period to help Turkey until the end of 2028.

Covering the fiscal years 2028-2024, it aims to support Turkey’s transition to a high-income economy. The main objective of the CPF is to develop the private sector into high-value-added and high-tech activities.

The framework includes strategies that target economic recovery and sustainable productivity growth, reflecting the strong cooperation of the World Bank Group. It is with Turkey.

The country cooperation framework aims to take important steps in areas such as accelerating the use of digital technology, promoting climate-friendly agriculture and increasing resilience against natural disasters. In this context, the dynamic private sector and the entrepreneurial spirit of Turkey will be further strengthened with the projects supported by the World Bank.

Although obtaining the agreement of the World Bank was a time-consuming and difficult action, but the final amount of support Financially, it is insignificant. Because a total of only 35 billion dollars of global financial aid has been allocated for Turkey. /Image/1403/01/24/1403012414302148329796874.jpg”/>
The newspaper published in Ankara has dedicated a front page headline to the issue of cooperation between Turkey and the World Bank of Turkey and wrote: “Simsek could not attract foreign investors Attract. Instead, it is receiving a $35 billion loan from the World Bank, while Turkey’s central bank’s foreign exchange reserves are at an all-time low. Now, behind the doors of the Central Bank, more than 20 billion dollars are injected into the market every month, and we have such a high consumption of foreign currency that the cure will not be achieved with these mortgages. Despite the resources coming from the Persian Gulf, it remained at a critical level. The lack of foreign exchange resources has made the government reach into people’s pockets and increase the amount of taxes”. >
Ministry of Justice data on executive and bankruptcy offices showed that the economic problems in Turkey are increasingly deepening, the economic crisis in Turkey has led to an increase in the number of financial complaints, bad checks and bankruptcy filings. .

The number of executive and bankruptcy cases in the courts reached 39 million by 2024. This situation shows a 49% increase in the number of enforcement and bankruptcy cases in the period 2015-2023.

Mustafa Bildirjin wrote in Birgun newspaper of Ankara: “In 2023, 14 million 43 thousand 957 new enforcement and bankruptcy cases were opened. With the addition of these new cases, the total number of administrative and bankruptcy cases reached a record of 38,969,260.”

Now it remains to be seen whether the Erdogan government will take any action to correct the crisis situation of Turkey’s economy in the coming months.

end of message/