IPA publishes 'Waste Report Card': 'The public sector is not saving'

According to the results of the research conducted with the contributions of Dr. Ozan Bingöl and Dr. Buğra Gökce, the public sector suffered a loss of 1 trillion 58 billion liras in two years.

The report points out that practices such as the currency-protected deposit (KKM) scheme and public-private partnership projects have caused billions of liras in losses to the public sector. 

According to the IPA report, the currency-protected deposit scheme was introduced by the then-Minister of Treasury and Finance as a policy tool that would have no burden on the budget, and therefore on the public, but due to the currency-protected deposit scheme, the public suffered a loss of 1 trillion 58 billion liras in two years. As a result, for the first time in years, the Central Bank could neither become a tax record-holder nor pay billions of liras in taxes. 

'NEGATIVE EFFECTS WILL BE FELT FOR YEARS'

The report emphasized, "Since the profit transferred to the Treasury in previous years could not be generated, the amount transferred to the budget was not as high as in previous years. Due to the current loss, it does not seem possible for it to make a profit within the next 5 years. Therefore, the negative effects of the implemented policies on finance and the economy will be felt for years."

According to the report, expenditures made for public-private partnership practices, which are not seen in the normal budget, are hidden in the implementation. When Court of Accounts and World Bank data are researched, it is seen that guarantee payment amounts are many times higher than investment costs. For example, although the investment amount for the Kınalı-Odayeri section of the Northern Marmara Project was 1 billion 40 million dollars, the guarantee amount reached 2.4 times the investment amount, totaling 2.5 billion dollars.

On the other hand, ignoring the principle of merit in public administration, exceptional staffing practices, and appointing unqualified individuals to high-level positions through non-competitive appointments both reduce service quality and increase costs. 

'WHILE CITIZENS ARE EXPECTED TO SAVE, THE PUBLIC SECTOR IS NOT SAVING'

No corrective steps have been taken on this issue for 19 years, and these practices have become widespread, turning into a school of thought for the current management approach. The report stated, "While citizens are expected to save under economic crisis conditions, the public sector is not saving. There are also serious increases in expenditure items such as central government printing and binding expenses, office furniture purchases, housing rental expenses, vehicle maintenance and repair expenses, and advertising expenses."

The report also drew special attention to a number of items. Some of them are as follows:

The IPA report stated that the increase in vehicle maintenance and repair expenses over the last three years has reached very high levels. Vehicle maintenance and repair expenses, which were 670.3 million liras in 2021, showed a 410 percent increase in 2023 compared to 2021. According to the report, "Such high increases in the rate of vehicle maintenance and repair expenses indicate either that the number of vehicles has increased disproportionately or that there are suspicious aspects in expenditures that need to be investigated."

ADVERTISING EXPENDITURES INCREASED BY 372 PERCENT

Advertising expenditures made from the central government budget in 2023 increased by 372 percent compared to 2021. In the same period, the increase rate in the CPI was 170 percent and the increase rate in the D-PPI was 185 percent. This shows that advertising expenses were made at a rate more than double the inflation. The report suggested, "In order for savings practices to be realized in advertising expenses, digital channels and tools should be used in news and communication activities. While the cost of technology decreases over the years, its capability increases. Economic efficiency should be observed in national and international information-communication activities."

HOUSING RENTAL EXPENSES

According to the IPA report, it is seen that housing rental practices have become widespread in recent years. For example, the fact that housing rental expenditures increased by 57.8 percent in the period from 2022 to 2023, during a period when a 25 percent limit was imposed on rent increases, means that new housing rentals are in question and that the state does not see itself bound by the limitations it imposes on citizens.

The experts who wrote the report also made the following emphases regarding the stage waste has reached and how it can be prevented:

"The inefficient use and waste of public resources in Turkey both consume economic resources and negatively affect the general welfare of society. The data presented in the report show that waste cannot be prevented unless public resources are used more effectively and transparently. Waste in areas such as public-private partnership projects, interest expenses, Currency-Protected Deposits, and meritless appointments prevents public resources from being used for the people and wastes a large part of the state budget.

'WILL CONTINUE TO POSE SERIOUS THREATS FOR THE FUTURE'

In order to prevent waste, it is necessary to strengthen transparency and accountability mechanisms in the public sector, make audit processes effective, and engage in long-term strategic planning. It is essential to develop a sustainable anti-waste policy that prioritizes the interests of the public in all public administration units, from central government to local governments. Otherwise, the dimensions of waste will grow even further and continue to pose serious threats to both the present and the future of the country."