Central gov't budget waits Parliament approval


Following the announcement of the mid-term economic program, eyes are on the budget to be offered to Parliament on Oct. 17. According to the mid-term economic program, expenditures and revenues in the central government budget are expected to be TL 540.9 billion and TL 525.4 billion, respectively, in 2016. Tax revenues of TL 444.1 billion and a budget deficit of TL 15.4 billion are expected.As in previous years, the Finance Ministry, National Education Ministry and the Treasury will have the lion's shares at TL 131.2 billion, TL 74.4 billion and TL 70.8 billion, respectively, in budget appropriations. Additionally, TL 28.4 billion, TL 26.1 billion, TL 24.2 billion, TL 20.3 billion, TL 16.5 billion and TL 11.6 billion were allocated to the Labor and Social Security Ministry, National Defense Ministry, Family and Social Policies Ministry, Security General Directorate, Food, Agriculture and Livestock Ministry and Public Hospitals Authority, respectively. The appropriation to be offered to the Directorate of Religious Affairs was increased to TL 6.4 million from TL 5.7 million last year. The Grand National Assembly of Turkey and the Presidential Office will be offered TL 820 million and TL 434 million from the budget. According to the mid-term economic program, which covers 2016-2018, the general government balance will have a deficit of 0.1 percent by the end of next year. It is expected that balance will be achieved at the end of the program. Government expenditures and revenues will gradually drop to 39.9 percent at the end of the program period. It is expected that the ratio of current account deficit to national income will be 4.9 percent and energy imports will be $39.2 billion in 2016. Also, tourism revenues are expected to be $28.6 billion in 2016. It is said that in the mid-term economic program that an additional 2.199 million non-agricultural jobs will be offered in the three-year period and unemployment is expected to drop to 10.5 percent by the end of 2015 and to 9.9 percent by the end of 2018. The program also suggests that the investment incentive system will be revised and the attractiveness of productive investments will be boosted with instruments such as the differentiation of tax and credit costs. The program includes identifying luxurious and highly imported consumption goods and taking necessary measures against them. The budget and the mid-term economic program might be updated by the government formed after the Nov. 1 snap general elections.