Şimşek says “In the short term, our main priority is disinflation and price stability”.
Minister of Treasury and Finance Mehmet Şimşek said in the Medium Term Program: “Our main priority in the short term is disinflation and price stability.” Mehmet Şimşek took the floor at the updated Medium Term Program presentation announced at 10:00 this morning. The Medium Term Program is a 3-year fiscal policy targets and implementation strategy that is updated every year. While the presentation of the new MTP was undertaken by Vice President Cevdet Yılmaz, CBRT President Fatih Karahan and some ministers from the Cabinet were also present.
Şimşek said, “Our main priority in the short term is disinflation and price stability. Short-term disinflation may have negative effects on growth, but this is temporary. Turkey’s future is clear. You will see from the figures that there will be a negative fiscal impact in 2025. In other words, we are reducing the budget deficit. In fact, A reduction in the budget deficit means strong support for disinflation. Our aim is to first ensure price stability in the short term, and then to achieve a permanent increase in welfare.
He continued:
You will see this in our efforts in the last year, we have taken and are taking important steps to ensure equity in taxes. Let me give you a few examples, last year we increased corporate tax by 5 points. What does this mean? This actually means an effort to increase direct taxes. There are no immediate results. You get results over time. We will see the impact of our fiscal efforts in the coming years.
We will continue our work on reviewing some tax exemptions. The most important issue to ensure justice in taxation is the fight against informality. Because informality is the most important injustice. “There are very important details in the last tax package regarding this issue,” he said.
“The stance of financial and public policies that is most important in terms of CBRT compliance”
CBRT President Fatih Karahan also made a statement about the Medium Term Program: “The stance of financial and fiscal policies is most important in terms of the macro framework in the MTP and the CBRT’s harmony.”
According to some sources, a new tax package is being prepared to reach the 2025 budget deficit targets, which are considered very ambitious. Şimşek’s message may mean that President Erdoğan’s policy of constantly prioritizing growth over the fight against inflation is changing. How the targets will be achieved in OVH will be spelled out in the Presidential 2025 strategy program at a later date.
Follow our English language YouTube videos @ REAL TURKEY: https://www.youtube.com/channel/UCKpFJB4GFiNkhmpVZQ_d9Rg
And content at Twitter: @AtillaEng
Facebook: Real Turkey Channel: https://www.facebook.com/realturkeychannel/