Details of Türkiye’s austerity package

According to the international group Tasnim news agency, the government In order to overcome the unprecedented economic crisis in Turkey, Erdogan has presented a special economic package, which is known as the “public budget saving package”, but the Turkish media and economic circles soon called it the “economic discipline” package and belt tightening. Even though only one day and night has passed since the announcement of the contents of this package, the Turkish market and public opinion did not like it and it has caused many negative reactions.

Political-economic analysts as well as prominent economics professors in various Turkish universities have widely criticized the so-called economic austerity package, but they all have two critical points in common:

1. It is not fair that the government created by the Justice and Development Party is extravagant and imprudent and the people pay for it!

2. Erdogan’s government invites the citizens of Turkey to save and austerity, but from the presidential palace to all the ministries, general offices, governorates and other institutions, the officials are wasting money.

Memet Shimshek poured clean water on people’s hands

Mehmet Şimşek, Minister of Finance and Treasury of Turkey, is the most famous person in Turkey these days. He, who previously had the experience of the Ministry of Treasury and was known as one of the successful ministers of Turkey in recent decades, left Turkey a few years ago to protest against Erdoğan’s single-minded behavior and his son-in-law’s involvement in financial matters. America, the Qatar Stock Exchange and the British Stock Exchange started extensive financial activities and accumulated considerable wealth. But in 2023, he returned to Turkey again at the invitation of Erdogan. And with the condition that the president does not interfere in financial issues, he took the helm of the economy again. Now that a year has passed since his new term of office, the US dollar in Turkey has gone from 20 to 33 liras. But Shimshek says, we should not expect miracles and he needs time to restore the country’s economic situation. Tasnim/Uploaded/Image/1403/02/24/1403022414194011830032634.jpg”/>

Simsek yesterday with Turkish Vice President Judet Yilmaz in a joint press conference , unveiled the dimensions of the so-called economic austerity package.

Mehmet Şimşek, Minister of the Treasury of Turkey, announced: “With the package we are announcing today, we will continue to reduce inflation in Turkey we help Government expenses will be disciplined and legal. The central bank takes measures to reduce inflation and this package is also in line with the same goal. We reduced the deficit, which had increased to 9 percent, to about 5 percent. But I have to say, this won’t be the first pack and it won’t be the last. Our most important agenda is to eliminate excessive day-to-day costs from our institutions. We will help the process of reducing inflation with the steps we take in fiscal policy. Our goal is to save money, which increases efficiency in the public sector. We are implementing the model of monitoring, inspecting and sanctioning the credits of some organizations. In general, monitoring the credits and expenditures of central offices, local offices, state-owned companies, current and mobile government funds, are all within the scope of this package. There are eight priority areas in public savings, which include spending on vehicles, buildings, public employment, efficiency in the administrative structure, energy and waste management, other expenses, and current spending. The entire public sector is covered by this package of measures. We will speed up structural reforms and carry out many reforms in public finances”. /Uploaded/Image/1403/02/24/1403022414191333730032624.jpg”/>

The main decisions for economic austerity and reducing current government expenses from this point of view is:

1. In the framework of these measures, the purchase of new cars and buildings in the public sector will be stopped for 3 years.

2. Buying furniture and equipment for government offices and institutions is prohibited for another 3 years.

3. New restrictions are considered for the salaries of high-ranking managers and astronomical salaries are put an end to.

4. In areas that have public transport vehicles, the office service for employees will be removed.

1 liter of gasoline costs 42 lira in the tank, and this has caused the cost of the transportation sector of ministries and departments to rise sharply.

Especially considering The fact that some Turkish government officials carry more than 10 escort, companion and advisor cars with them for transportation, and the use of foreign luxury cars is an integral part of the luxurious life of Turkish government officials. But now Shimshek has announced that the use of foreign vehicles is ending and from now on, foreign vehicles will not be purchased. We intend to concentrate all government vehicles in specific centers and departments and institutions will use them in an inter-organizational way. In the next 3 years, all government departments will hire only as many people as retire. In order to reduce the large expenses of ministries and departments, activities such as in-service training, meetings, etc. will be held not in expensive hotels and residences, but in public places.

The number of missions abroad will be very, very limited. No transfer of other credits to this item is possible. Government offices do not have the right to give each other certificates of appreciation or souvenirs, calendars and other things, and in return they should not accept gifts from the private sector either.

In order to reduce the cost Printing and consumption of paper, transfer of government affairs to electronic correspondence system will be completed. Notifications are transferred to the electronic system. Corporate archives will be moved to an electronic environment.

Publications, reports, etc. will not be printed for promotional purposes. Technical and administrative machinery and equipment will not be thrown away before the end of their economic life. All government departments and personnel must follow the austerity measures without exception. In the coming period, we will complete and implement our work in many areas such as public procurement reforms, tax justice and the informal economy. In case of negligence and distraction, punishment will be applied. Regularly, compliance with the measures is checked by the relevant ministry. In case of violation of the savings directive, administrative sanctions and fines will be applied.

Shimshek said about the prioritization of budget allocation to construction projects: “We have prioritized public investments . We will prioritize investment projects whose physical progress is above 75% and investment projects that are necessary due to the risk of earthquakes. We prioritize projects that increase food supply, green and digital transformation, and port-rail connectivity projects. We do not include new projects in the public investment program except in the necessary cases”. Could it turn to austerity?

Until a few years ago, everyone knew Turkey as a developing economy that It took a step in the direction of expanding trade relations and sought to increase exports, attract tourists and investors, and according to the upstream document known as “Turkey 2023”, it was supposed to grow and develop in 2023 and on the 100th anniversary of the establishment of the republic. It has taken a leap and is the owner of one of the top 10 economies in the world. But not only did such a dream not come true, but in the promised year, the people of Turkey experienced the worst rate of inflation, poverty, unemployment and worry about livelihood shortage. Because, according to Turkish economic experts, Erdogan’s government adopted ineffective and wrong economic policies, and in addition, the government’s expenses went up a lot.

Judt Yilmaz The vice president of Turkey has also announced that the two important goals of the so-called economic austerity package are:

1. Healing the economic wounds caused by the great earthquake of Herod Maresh, whose damage is estimated at 104 billion dollars.

2. Reducing inflation and poverty in Turkey.

Erdogan’s deputy has promised that inflation in Turkey will be single digit by the end of 2026.

The two main figures of the Erdogan government’s economic team announced the provisions of the economic austerity package, which according to many political experts, the Turkish presidential establishment and the Justice and Development Party They continue to operate in luxury and it is unlikely that people will have a positive attitude towards the austerity package.

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