FINANCE MINISTER SANGUINE ON BUDGET PERFORMANCE
Finance Minister Naci Agbal discussed the budget deficit and the overall economy in an exclusive interview with Dunya newspaper. Highlights of the interview are below.
Turkey’s budget deficit, compared with GDP, will not exceed 2 percent.
Expansionary fiscal policies support production, investment and exports. It is selective and temporary. It will not lead to an inflationary outcome.
Infl ation and employment are the government’s top priority issues.
Sectorial tax-fee incentives will not be extended after September.
The burden that the Credit Guarantee Fund and Small and Medium-Sized Enterprises Development Organization credit program will add to the budget will be lower than expected.
Fiscal policy, including direct support and incentives, was implemented in a timely and accurate manner, revitalizing the economy.
International banks and organizations are revising their growth forecast for Turkey.
The government expects to reach 4.4 percent economic growth, as laid out in the Medium-Term Program.
The expansionary policies of the central banks of major countries display a positive outlook on reducing resource costs.
Factors that would pose political risk have been eliminated.
Privatization- driven, income-increasing regulations will be made in the budget.
No tax increase is on the agenda.
The Medium-Term Program for 2018 to
2020 will dominated by savings, except for investment and production and export supports.
A new law on income tax will be presented to cabinet this week. The value-added tax law has also been fully revised.
“I dont want anyone to worry about Turkey’s budget performance and think that there will be a budget deficit, as well as current deficit, just from looking at the first four months’ figures.”