Will there be no public sector hiring? Cevdet Yılmaz responds...

Vice President Cevdet Yılmaz answered questions from journalists during a live broadcast on TV100.

Vice President Cevdet Yılmaz stated, "There is no such thing as 'no personnel will be hired in the public sector.' As many people as have left—whether through retirement, death, resignation, etc.—that many people can be hired again."

Responding to a question about official vehicles within the scope of the "Public Savings and Efficiency Package," Yılmaz said that while it is determined by law who can use official vehicles, practices that go far beyond the law have developed over time.

Noting that this situation brings financial burdens, Yılmaz said:

With this savings circular, we are pulling the practice back to legal limits. We are trying to achieve this. Of course, our general managers and administrators may have needs. Methods to solve these needs in a more cost-effective way will be developed. Things required by the service will be done, but the main idea is this: let the institution have a vehicle pool, and those who need it should receive this service from there. For example, if an office needs to use an armored vehicle, there is no domestic production for it in the country. Therefore, that must continue. We say, 'Use domestic vehicles except in mandatory cases.' We say, 'Get rid of old vehicles as much as possible.'

Yılmaz stated that in this way, both domestic production will be supported and a more efficient environment will be created in procurement and operation.

Upon a question regarding public employment, Yılmaz used the following expressions: "There is no such thing as 'no personnel will be hired in the public sector.' As many people as have left—whether through retirement, death, resignation, etc.—that many people can be hired again, but we do not want to exceed this. There are over 5 million employees in the public sector. Such a limit has been imposed for a certain period with an understanding that will not disrupt public services."

Yılmaz stated that the sub-elements regarding this have not yet been worked on, saying, "It would not be right for us to say anything at this stage regarding the sub-breakdowns. Whatever the need of that day is, wherever there is more need in terms of public service, planning will be made within that framework."

"PUBLIC TRANSPORTATION SUPPORT WILL BE PROVIDED"

Responding to a question about the removal of shuttle services in places with public transportation, excluding defense and security, Yılmaz said that if it is a region with security problems or different risks, a more controlled approach will be in question there.

Cevdet Yılmaz stated that the Strategy and Budget Presidency of the Ministry of Treasury and Finance has already switched to this practice, and said the following:

We will have expanded this. There are such institutions and campuses that there is no public transportation opportunity here. Therefore, the same practices will continue there. The shuttles currently in operation will also continue until their term expires, and we will have switched to a new method at the renewal stage. On the other hand, some support will also be provided to public employees regarding public transportation. This process will be carried out with some support that generates a certain number of public transportation rights.

Regarding the question about imposing an upper limit on the salaries of public officials who receive salaries from more than one place, Yılmaz explained that there has been a practice for the general public sector for years, and regardless of how many board memberships there are, the right to receive a salary from only one place other than their own salary is granted.

Yılmaz stated that there are some exceptions to this, saying, "In some companies, in structures where the public has a partnership, those assigned can receive high (salaries) even if it is exceptional. A reaction has formed in the public opinion regarding these issues, creating a sense of injustice. Therefore, we decided to set a general limit."

Explaining the limit they set with an example, Yılmaz used the following expressions:

Let's say a public official is working in a bank that is a public affiliate. Since the public is a partner, a certain management right is formed there for the public. When you say, 'Let's not take this at all,' this time you are causing damage to the public; it remains in that bank. We solved it this way: the public official assigned there can receive it within a certain limit. It will not be as much as their salary; it will be lower. There was a High Planning Council (YPK) decision in the past; there will be a limit connected to that, and this will not be a very high figure. We will record what is received above that to the budget. Let's say there is a public right of 200 thousand liras per month on the board of directors; the person representing the public there will receive 50 thousand liras of this, because they are also taking responsibility and spending time, they will have received as much as they deserve. They will have received a compensation suitable for our general average. The figure above this, for example 150 thousand liras, will go to the budget and will have been recorded in the general budget. There is a YPK decision in the past; a measure connected to that will be set, but it will not exceed this salary.

"MTP WILL BE UPDATED IN SEPTEMBER"

Asked about the amount of savings in the public sector and its contribution to the budget along with the content of the new packages, Yılmaz noted the following:

We will update our Medium-Term Program (MTP) in September. All figures regarding the budget deficit, our current account balance, and our macro estimates will be updated there. You will see the effect of this package and our other works collectively. We did not want to do such a piece-by-piece analysis beforehand. This savings package is a part of our reforms and the work we do. It is necessary to look at public balances in a more integrated way. The job has a revenue dimension as well as other expenditure dimensions. When you increase the collection rate and reduce informality, you improve your balance on the revenue side. You will see the collective effect when we update the MTP in September.

Stating that the Central Bank is not working for a specific exchange rate target, but is striving to accumulate reserves and reach a stronger position, and that risk premiums have fallen with the accumulation of reserves, creating a more reliable environment, Yılmaz said that the increase in reserves will continue in a positive direction in the coming period.

Yılmaz stated that they created their economic programs not with any foreign institution, but with Turkey's own common sense, institutions, and all stakeholders in a participatory manner, and that President Recep Tayyip Erdoğan's political will is behind it.

Expressing that credit rating agencies' ratings regarding Turkey have also improved with the improvement of the investment environment, Yılmaz said:

"Investment is a critical element. I mean, we are a developing country. We have to invest. We have to evaluate our resources in the right areas, of course in areas with higher added value, with both the public and the private sector. We say the Century of Turkey. We must make this the century of investments. We must build our future. Maybe we might experience some difficulties in the meantime. Increasing our savings rates might sometimes force us, but believe me, when we achieve these, we will have created a much stronger and much more prosperous future for future generations."

Yılmaz stated that law is also an area related to the economy, that they are working to strengthen law and justice, and that it would be more correct to leave specific court decisions to the evaluations made by an independent and impartial judiciary.

"THE FETÖ ISSUE DEALT A SERIOUS BLOW TO THE JUDICIARY"

Explaining that Western countries say "it should not be politicized" for the judiciary in Turkey on one hand, and on the other hand, they express their expectations from the judiciary regarding certain specific cases, Yılmaz continued as follows:

"This is also an inconsistent approach. What is essential is to make improvements regarding the entire judicial system, regarding the whole of the system, rather than specific events. Otherwise, I think that if you discuss this over a few symbolic issues, you cannot produce a real social result. Our duty as politicians is to make the justice system more effective, faster, more reliable, and more accessible. A lot has really been done in this area in the last 20 years. From the IT system infrastructure to its buildings, the number of personnel, changes in various laws, to reforms related to the European Union or not... One should not forget the past, the previous periods, but this FETÖ issue really dealt a serious blow to the judiciary. It opened a heavy wound. We are recovering that, and hopefully, it will go to even better points."

Yılmaz emphasized that there is no reason for Turkey not to be removed from the Financial Action Task Force's grey list in technical terms, and also noted that if it is not removed, it would be a political decision.

'If there is a public official doing wrong within the state, the state does what is necessary to them'

Yılmaz responded to the question, "In recent days, this Ayhan Bora Kaplan case and subsequently the suspension of some police officers. There have been statements by the President on this matter as well. But our minds are confused because there were those who were released, new detentions started. What is happening?" as follows:

"If there is a public official doing wrong within the state, the state does what is necessary to them. We have a very strong country. We have a state tradition and a strong capacity that has overcome many things in the past. If there are those who do wrong, our state goes after them and does what is necessary. No one is allowed to enter into different kinds of plots within the state. As a matter of fact, our Minister of Interior has also put forward the clearest statements necessary on this matter. An investigation is ongoing. On one hand, there are inspectors, on the other hand, there are suspended officers, but I honestly do not find it right to comment on any subject before the process is finished. It would not be right to speak about people before the processes are finished and the procedure is completed."

"INFLATION WILL DECLINE AFTER JUNE"

Explaining that there will be a rapid decline process in inflation on an annual basis starting from June, Yılmaz said, "We see an improvement in future inflation expectations, lower levels. What is our general plan? Let's say around 38 percent this year, plus or minus inflation. Next year below 20 percent, and reaching single digits again in 2026. We are not saying this just to talk. We are implementing it with monetary policies, fiscal policies, and structural reforms. We are implementing it with a program built on these three pillars."

Stating that in an environment where inflation is high, predictability in the economy decreases, sustainable growth is damaged, and income distribution, especially for fixed and low-income segments, is negatively affected, disrupting social justice, Yılmaz said, "When we lower inflation, we will have passed the most important stage in terms of both economic growth, sustainable growth, and social balances. Otherwise, an increase you make today erodes 3 days later; it has no meaning in real terms. Therefore, you can produce permanent social welfare in an environment where you lower inflation. Our goal is this. To produce not nominal, but permanent, real, actual social welfare."