Ali Babacan's take on the MTP: The burden will once again fall on low-income earners

Following the announcement of the Medium-Term Program (MTP), which includes key macroeconomic targets such as inflation, employment, and growth for the 2024-2026 period, DEVA Party Chairman Ali Babacan made statements on the social media platform X.

"THE BURDEN WILL ONCE AGAIN FALL ON LOW AND FIXED-INCOME EARNERS"

Babacan evaluated the Medium-Term Program with the following words:

"Today's Medium-Term Program (MTP) speech showed that Mr. Erdoğan continues to hold everyone except himself responsible for high inflation.

Instead of making a sincere confession regarding the Currency-Protected Deposit (KKM) scheme, which is a project that bankrupts the state, he defends KKM with wordplay.

Erdoğan, who promised single-digit inflation by the end of this year, now only foresees single digits on paper by the end of 2026. The MTP contains no concrete steps to strengthen the independence of the Central Bank or increase transparency.

There is no step in the MTP regarding the taxation of rentier income. The burden will once again fall on low and fixed-income earners.

The MTP does not go beyond repeating the abstract and general expressions that have been repeated until today regarding structural steps.

In summary, trust cannot be established and predictability cannot be ensured with a program that does not mention the mistakes made, has weak internal consistency, and contains abstract and general expressions instead of concrete steps."