ANKARA, May 13 (AFP): Turkey announced Monday a three-year austerity plan aimed at reducing public spending to calm inflation that reached heights of nearly 70 per cent year-on-year in April.
The government said it will limit recruitment and transport spending for public servants, among other measures.
"Our priority is to combat the high cost of living. Low single-digit inflation is essential for sustainable growth," Finance Minister Mehmet Simsek said during a presentation of the economic plan in Ankara.
The plan includes numerous budget cuts "for the entire public service" some of which will require legislative changes to be submitted to parliament, the minister said.
The purchase or lease of any new public service vehicle will be banned for three years, except for "mandatory requirements" concerning the health, security and defence sectors.
The use of imported vehicles will also cease within the public service, the minister said.
The construction or purchase of public buildings is also suspended for three years, except for those built to reduce earthquake risks or those affected by natural disasters.
Other budget cuts are also planned to "discipline spending", such as a 10 per cent reduction in public budgets for the purchase of goods and services and a 15 per cent cut in investments-with the exception of spending in regions affected by the February 2023 earthquake.
The minister did not specify the government's policies on salaries but the number of recruitments in the civil service will be limited to the number of retirements.
In mid-April, Turkey's Labour Minister Vedat Isikhan announced a freeze of the minimum wage, which is usually raised in July.
© 2024 - All Rights with The Financial Express
