11/27/2019
Debates on the 2020 Budget of the Ministry of Treasury and Finance at the Planning and Budget Commission (I)
Treasury and Finance Minister Albayrak: “Structural changes will be put into life next year enhancing the coordination between fiscal and monetary policies continuing decisively to fiscal discipline aiming to utilize public funds and resources in a more efficient and prudent manner by constituting sustainable and lasting income resources – We will constitute a fiscal space eliminating unproductive expenditures – We will carry on with alternative models including public offerings in privatization practices”…
The 2020 budget of the Ministry of Treasury and Finance and related and subordinated institutions are being debated at the Parliamentary Planning and Budget Commission as of November 27, 2019. Treasury and Finance Minister Berat Albayrak stating during his presentation at the Commission that fluctuations in exchange rates have faltered and financial markets are normalized, underlined that a moderate recovery is thus witnessed in economic activities in the first half of 2019 and the recovery in financial conditions and the declining inflation rate have been effective in the continuation of the recovery process in the second half of the year. Albayrak stating that they will reduce the inflation rate to one digit figures in a lasting manner by putting structural changes into life which will enhance competitiveness and productivity by means of a coordination between monetary and fiscal policies, said that the coordination between fiscal and monetary policies will be strengthened next year, fiscal discipline will be continued decisively and structural changes will be put into life utilizing public funds and resources in a more efficient and prudent manner by constituting sustainable and lasting income resources. Albayrak also said that the effectiveness of public investments, expenditures and incentives will be enhanced, they will carry on with transformation programs, will constitute a fiscal space eliminating unproductive expenditures and this will be primarily implemented in areas that will contribute to sustainable growth such as education, healthcare services and areas of production with high added value. Albayrak spoke as follows: “We have provided loans amounting to TL 23.8 billion to more than 76,000 companies within the scope of the KOBİ (Small and Medium-Sized Enterprises) Value I Package, TL 20.3 billion to more than 44,000 firms within the scope of the KOBİ Value II Package and around TL 20 billion to more than 24,000 companies with the Economy Value Package.” Albayrak stating that they have availed a loan amount of around TL 33 billion for the utilization of companies within the scope of İVME (Advanced Productive National Industry) financial package, said that a number of more than 37,000 credit transactions has been reached within the scope of the package amounting to a credit volume of around TL 25 billion. Albayrak also made the following statement: “We will carry on with alternative models including public offerings in privatization practices.” Turkish economy Albayrak spoke as follows: “The Turkish economy has displayed seasonally adjusted growth rates of 1.6 percent and 1.2 percent respectively in the first and second quarters of 2019 compared to the previous year. The growth rate is foreseen to realize at a level of 0.5 percent in 2019 as was stated in the New Economic Program (NEP). As for the programmed period of 2020-2022, the growth rate is targeted to realize at a level of 5 percent which will be close to the potential growth rate.” Albayrak stating that the inflation rate in 2020 will be 8.5 percent, at a level of 6 percent in 2021 and 4.9 percent in 2022, said “The unemployment rate for 2019 is estimated as 12.9 percent.”
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