Home News Medium-term fiscal plan aims to lower government budget deficit-to-GDP ratio

Medium-term fiscal plan aims to lower government budget deficit-to-GDP ratio

541
0

Medium-term fiscal plan aims to lower government budget deficit-to-GDP ratio

Turkey aims to decrease the central government’s budget deficit-to-gross domestic product (GDP) ratio gradually until 2022, according to the country’s medium-term fiscal plan.

The country aims to keep the ratio at 2.9% during the next two years and drop to 2.6% in 2022, the plan, issued in the Official Gazette, revealed on Friday.

The plan expects the central government’s budget deficit to be TL 138.87 billion for 2020, TL 157.6 billion for 2021 and TL 160.15 billion for 2022. Last year, Turkey’s central government budget balance showed a deficit of TL 72.6 billion, while the deficit was TL 68.1 billion in the first 8 months of 2019.

Budget expenditures are also forecast to reach TL 1.08 trillion in 2020, TL 1.19 trillion in 2021 and TL 1.29 trillion in 2022. The government announced previously that the year-end budget balance target was TL 80.6 billion, with TL 880.4 billion revenue and TL 960.97 billion expenses for 2019.

SINGLE-DIGIT INFLATION

The plan predicted 5% GDP growth rate for the next three years – TL 4.87 trillion for 2020, TL 5.48 trillion for 2021 and TL 6.07 trillion for 2022. The Turkish economy increased by 2.6% last year and 7.4% in 2017, while it is expected to grow between 0.1% and 1% in 2019 by several institutions. The end year consumer price index – also known as the inflation rate – is expected to stand at 8.5% in 2020, 6% in 2021 and 4.9% in 2022.

According to the Central Bank of the Republic of Turkey (CBRT) survey, year-end inflation is expected to reach 13.96% in 2019.

REVENUE PERFORMANCE

The fiscal policies’ main goal is to continue fiscal discipline tenaciously, the plan said.

“In this context, efficient use of resources will be ensured and structural changes for providing savings will be implemented in designated areas,” it added. The plan also aims to create permanent resources to raise the budget’s revenue performance and reduce the underground economy. The plan promises transparency, accountability, productive resource usage, tax equity and support for education, investment and agriculture. Public investments will reduce differences between regions’ development levels across the country, the plan underlined.

The plan was prepared by the Treasury and Finance Ministry, and the Strategy and Budget Presidency.


Source: Daily Sabah
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


Previous articleIs the tax base applied to the sale of motorcycles, in Turkey?
Next articleIndustrial Production Index, August 2019, in Turkey

LEAVE A REPLY

Please enter your comment!
Please enter your name here