3 billion TL deficit projected in Budget
THE government is facing a shortfall of 3.05 billion TL in its Budget next year, Finance Minister Alişan Şan has said.
Mr Şan stated government spending is forecast to be 35.85 billion TL in 2023, while revenues will be only 32.80 billion TL.
He said that the government will try to plug the projected gap in public finances with “income-generating regulations”.
Mr Şan was speaking during a BRT TV interview in which he spoke of plans to pass new laws regarding the foreign exchange market, crypto currencies and “virtual” betting.
“We will try to increase the country’s income by putting these [regulations] into practice,” he said.
“Most importantly, we need to address the black economy. The main thing is to use the digital world and information technology more.”
Pointing out that the Budget is prepared based on estimates, Mr Şan said: “We tried to make our 2023 forecasts in the best way possible. Hopefully, there will be no need for an additional Budget.”
Stating that the 2023 Budget was prepared with a 180 per cent increase compared to 2022, Mr Şan said the “cost of living” – which dictates how much public sector salaries and pensions increase by every six months – is expected to be 35 per cent in January 2023 and 25 per cent in July 2023.
Mr Şan noted that Turkey’s contribution to the 2023 budget will be 8 billion TL, including 3.4 billion TL for “grants and investments”, 2.1 billion TL for defence expenditure and 2.5 billion TL in loans. He added that just under 2 billion TL will be allocated to local governments next year.
“I think the numbers will be realistic,” he continued. “The Budget is a forecast, we hope our forecasts will be correct. We will take into consideration the Budget committee’s opinions and assessments. . . Adjustments can be made if the need arises.”
Mr Şan added that MPs will debate the Budget either at the end of December, after local elections on Sunday, December 25, or in January.