Türkiye against inflation and economic austerity

According to the international group Tasnim news agency, now that 3 weeks from the elections Turkish municipalities have passed, once again the media and political circles of this country are talking about inflation and economic crisis. Each US dollar, which was worth 20 liras last year before Erdogan’s re-election as the Turkish president, is now close to a terrifying figure of 33 liras, while there is no prospect of changing the status quo.

The National Statistics Center of Turkey has announced the annual inflation rate for 2023 at 68%, but independent economic think tanks believe that the real inflation in Turkey is triple digits, especially in all three sensitive and vital food sectors. , clothing and housing, the people of Turkey are facing 115% inflation, but in this difficult situation, the government has nothing to say about inflation and the livelihood of the people, and Erdogan has repeatedly announced that Turkey’s current economic problems have global dimensions and all the people of the world are affected. They are inflation!

The minister who was supposed to solve the problems

The last statement of Mehmet Şimşek, the Minister of Finance and Finance and the main helmsman of the Turkish economy, was a cold shower for many Turkish citizens, because in the days when everyone expected him to announce his latest economic package to slow down and reveal the new measures, he said something that disappointed everyone.

Ankara-printed newspaper wrote: Millions of our citizens are caught in the economic vortex, but Mr. Minister, He only said this sentence; “We will cut costs soon.” The newspaper continued: Şimşek only gave a message of saving and austerity, however, that tax amnesties for holdings and projects are guaranteed. Contractors close to the government have earned them hundreds of millions of dollars in profits, but ordinary people are unable to provide rent and ask; Is Turkey’s budget deficit going to be financed from the pockets of grocers, retirees and workers? Image/1403/02/01/1403020114075781729853864.jpg”/>

Of course, it was not only Şimşek’s words that caused the Turkish people to protest, he announced in a speech at the World Vision Forum in America did “We have to convince people that inflation will decrease,” thousands of people wrote in response to the minister on social media. “Only a colonial governor would use these terms.”!

The most widely circulated newspaper in Turkey, Suzju newspaper wrote: “After the recent elections, the most important issue for the government and the people is the economy. Worsening income distribution, record breaking poverty and inflation have worried everyone. Now that the cost of living in Turkey has skyrocketed, the government wants to encourage people to be austerity, contentment and save, apparently the only plan of the Erdogan government is to pay the cost of organizing the economy from the people’s pockets”.

Who will be richer?

One ​​of the political features – The economic aspect of the Justice and Development Party is that in the last two decades, it has gathered emerging groups of contractors and big and rich businessmen who have only one condition to carry out huge construction and service projects: “guaranteeing profit”. /> In such a way that the government, for example, does not spend a single lira from the country’s public budget for the construction of a highway, and the road is built directly with the money of the consortium members, but the toll management of the entire highway route, with a long-term contract, is The said company is handed over. The government and the contractor group agree on a general estimate of the highway’s income, and for example, it is said that the highway will generate income of 100 million liras every year and a total of 1 billion liras in a 10-year period, and the government will receive this income. fully guarantees, that is, if during this period, the number of cars crossing the said highway is less than the ceiling of one billion lira, the deficit will be paid precisely from the treasury.

In the package Savings from the holdings guarantee scheme and tax break, which had become a budget black hole, were not taken into account, while excessive spending in municipalities was exposed to the public, it was announced that the minimum wage would not be increased and a calendar for the appointment of teachers would not be established. The review of taxes received from rental income and value added tax of restaurants and small businesses after March 10 showed that the cost of losses caused by incorrect policies will again be directed at citizens.

The mechanism mentioned above It was mentioned about the financing of credit projects, they contain a series of corrupt and rent-producing holes and bottlenecks. From the principle of various project definitions to the estimation of annual profit and loss, all of them have loopholes that the statesmen can negotiate with the contractors, as a result, a rich and powerful class is created that is friendly and connected with the Justice and Development Party. , it achieves huge profits and at the same time, causes negative social reactions.

Who is responsible for the destruction?

Mehmet Shimshek is known as a strict economist who has a firm belief in financial discipline. He has recently announced once again that he considers financial discipline to be an important priority.

But the problem is that Shimsek does not become an opponent of the presidential institution, which has its office in Beshtepe Palace in Ankara. It has 200 rooms and has caused many protests with the staggering costs of several hundred million dollars. Recently, many municipalities in Turkey fell into the hands of the opposition and the new mayors faced strange images, for example, the municipality of Sinjaktepe in Istanbul, which was previously owned by a veiled female mayor from Erdogan’s party, had a large swimming pool and jacuzzi inside the building. which was only used by the mayor, of course, other municipalities have also reached the point where they have left a debt of 100 billion lira (an amount equivalent to 3 billion three hundred million dollars!).

Turkish economic experts believe that in 2024, the possibility of a decrease in inflation is far from expected, and in the best possible conditions, in the second half of 2025, a relative improvement will be observed in the Turkish market.

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