Discussions on the 2024 Budget Bill started today at the Grand National Assembly of Turkey. Vice President Cevdet Yılmaz spoke during the discussions on the entire budget. Yılmaz briefly said following words:
“WE WILL STRENGTHEN OUR FAMILY INSTITUTION AND PROTECT OUR GENERATIONS AGAINST HARMFUL CURRENTS”
"Our budget includes items that prioritize construction, revitalization and Turkey's growth in every field. Our budget; It has a structure that is compatible with the goal of ensuring macro financial and price stability, with an understanding that better restores our cities destroyed by earthquakes, reduces future disaster risks, and strengthens the coordination of fiscal and monetary policies. 2024 budget; It has an inclusive development approach that supports investment, employment, production and exports. In our budget, priority is given to sharing the opportunities provided by stable growth with all segments of society with a people-oriented and social welfare-enhancing approach. It was prepared by taking into account the needs of all segments of society, including workers, civil servants, retirees, tradesmen, farmers, children, young and old, and the needs of our 81 provinces and each region were considered.
Our 2024 budget; We will use it to fulfill the promises we made to our nation in strategic areas such as national technology move, energy and food supply security, green and digital transformation. We will support our production eco-system, which will support our real sector in every field, especially in groundbreaking technologies. We will continue to protect the environment of peace and security in every corner of our country. By protecting our rich culture and values, we will strengthen our family institution and protect our generations against harmful trends.
“INFLATION WILL BE REDUCED TO SINGLE DIGIT FIGURES IN 2026”
The annual increase rate of CPI in the Turkish economy at the end of 2022 was 64.3 percent, together with the base effect as well as the developments in global energy and food prices. In 2023, the strengthening inertia effect due to the developments in the exchange rate, the rigidity in services inflation, the high course of food prices, tax regulations and cost pressures have been decisive in the inflation outlook. In this context, it was aimed to control the deterioration in inflationary expectations and pricing behavior through monetary and quantitative tightening, selective credit practices and simplification of the macroprudential framework, which was initiated in June 2023.
While the average of monthly inflation rates announced in 2022 is 4.26 percent, the average of monthly inflation rates announced in the last three months is 3.82 percent. We predict that this rate will decrease further with the announcement of inflation rates in the coming months. In this process, we will transition to a period of stability in 2025 by ensuring the continuity of our disinflation policies; The decline in inflation will accelerate, predictability will increase, and the inflation rate will decrease to single digits again in 2026.
While our share in worldwide goods exports was 0.4 percent in the early 2000s, it exceeded 1 percent for the first time in 2021, and increased to 1.05 percent on a quarterly basis in the second quarter of 2023.
The current account deficit for the January-September period of 2023 was at the level of 40.8 billion dollars. The current account balance gave a surplus in October. In this regard, it is anticipated that the current account deficit will be at a level close to the Medium Term Program estimate of 42.5 billion dollars at the end of the year. In addition, we expect the ratio of the current account balance to national income to be close to the Medium Term Program estimate of 4 percent."