Minister Şimşek announces: Earthquake expenditures account for 3.7 percent of national income

Minister of Treasury and Finance Mehmet Şimşek pointed out that when earthquake expenditures are excluded, the ratio of the budget deficit to national income in 2023 was 1.7 percent, which is below the Maastricht criteria, stating, "The budget results demonstrate our determination to achieve program targets and restore fiscal discipline."

Şimşek made an assessment regarding the 2023 central government budget realization results to an AA reporter.

Noting that the budget deficit was 1 trillion 375 billion liras, approximately 258 billion liras below the Medium-Term Program (OVP) expectations, Şimşek said, "The ratio of the budget deficit to national income was 5.4 percent, 1 point below the OVP forecast of 6.4 percent. When earthquake expenditures are excluded, this ratio is at the 1.7 percent level."

Reporting that higher-than-expected revenue collection was effective in this positive outlook for the budget deficit, Şimşek stated, "Effective tax audits conducted nationwide, a strong fight against the informal economy, and efforts to accelerate collection have been decisive in this increase in revenue performance."

AN APPROACH THAT DOES NOT CREATE ADDITIONAL BURDEN FOR FUTURE YEARS

Providing information on the work carried out, Şimşek explained that debtors were contacted individually and the necessary information was provided for them to pay their debts.

Stating that assistance was provided to debtors who were unable to make a lump-sum payment through installment plans, Şimşek said, "Necessary enforcement proceedings were carried out against debtors who were not inclined to pay. Looking at the expenditure side, despite the transfer of more resources for earthquake-related needs, a performance consistent with the OVP was displayed. In expenditures excluding the earthquake, an approach was adopted that is consistent with the goal of fiscal discipline, where priority needs are met and no additional burden is created for future years."

Minister Şimşek stated that while 762 billion liras in spending was projected for earthquake-related needs, the year-end expenditure amount reached the 950 billion lira level, and noted the following:

"The ratio of earthquake expenditures to national income is 3.7 percent. When we exclude these temporary expenditures, the ratio of the budget deficit to national income is 1.7 percent, which is also below the Maastricht criteria. The budget results demonstrate our determination to achieve program targets and restore fiscal discipline."