THE MOST DIFFICULT BUDGET!

The 2016 budgets are extremely dynamic because there are more scenarios than in previous years… Companies are planning to revise their 2016 budgets monthly or quarterly according to developments. The 2016 budgets, which are being prepared in a much more c

Capital (Turkey) - - COVER STORY -

UNCERTAINTIES inside and outside Turkey means that 2015 was a difficult year. Work on budgets, which should have been completed by the end of ΣOctober or in November, has slipped to December because everyone is awaiting the results of the general election. Indeed, many companies are not expected to complete their 2016 budgets until the end of December.

In such an environment, the issue that makes life most difficult for owners and CEOs is uncertainty… Anadolujet CEO İbrahim Doğan refers to work on the 2016 budgets as “planning the unplannable” and adds that they had one of their most difficult budgetary periods this year.

We also studied the companies trying to prepare their budgets for 2016 in such a difficult environment. Virtually all of the major groups have different budgets for 2016 according to A, B, C or even D scenarios. Those who cannot prepare budgets according to different scenarios are working with dynamic budgets. They are planning to revise their budgets every month or every quarter according to developments. Another prominent feature in the 2016 budgets is the emphasis on savings measures. Only a small number of companies are thinking of investments in 2016. Those who cannot see into the future are postponing investments.

SLIPPING TO DECEMBER

Our research has shown that the 2016 budgets are different from their predecessors in a number of ways. The increasing uncertainties this year and the repeat election on 1 November have delayed the start and finish dates for the budgets. For many large companies, the completion dates for their budgets, which should have been in October or November, have slipped to December.

The most important reason for the delay is that companies are awaiting the election

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