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Economists criticize the Palace's 'austerity' package: 'As long as it does not cover Palace expenditures, its planes, and its convoys...'

Minister of Treasury and Finance Mehmet Şimşek has announced the public sector austerity program. Following the press conference where many austerity measures and precautions were announced, economists evaluated the government's austerity program.

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Minister of Treasury and Finance Mehmet Şimşek has announced the public sector austerity program. While Şimşek announced many 'measures' regarding cuts in public spending, vehicle purchases, invitations, and cocktails, economists evaluated the 'austerity' package.

"HE SEES CIVIL SERVANTS AS THE REASON FOR THE BUDGET DEFICIT"

CHP Deputy Chairman and member of the TBMM State Economic Enterprises (KİT) Commission, Özgür Karabat, said, "Minister of Treasury and Finance Mehmet Şimşek, who has initiated a so-called austerity program in the public sector, is once again up to other schemes."

Karabat also stated the following in his post:

"Şimşek, who sees the citizen's consumption as the cause of inflation, also sees civil servants as the reason for the budget deficit.

Ignoring the hundreds of billions of liras in lucrative and tailor-made tenders, Şimşek sees the shuttle services of civil servants as a burden on the public.

The bill for the KKM (FX-Protected Deposit scheme) to the Central Bank and the Treasury is at least 1.2 trillion liras, yet Şimşek does not present a plan on how this bill will be reduced."

"HAS THE REUNION BEEN LEFT TO ANOTHER SPRING AGAIN?"

Ekonomi Gazetesi Editorial Board Chairman Şeref Oğuz reacted to the austerity package by saying, "The mountain labored and brought forth a mouse."

Oğuz said the following in his post:

"The Minister of Finance announced the austerity package, the result is frustration.

An economic winter is coming and a Hicaz song is in my ears;

"Winter has come, separation is opening a wound in the chest.

Has the reunion been left to another spring again..."

In summary, let the austerity be practiced by local governments instead of central administration, by the private sector instead of the public, and by the citizens instead of the government."

 

"THERE IS NO REDUCTION IN GUARANTEE PAYMENTS"

CHP Deputy Chairman and economist Yalçın Karatepe, in his evaluation of the package, stated, "Guess what is missing? There is no regulation to make tenders competitive by changing the Public Procurement Law, there is no reduction in guarantee payments made in foreign currency within the scope of PPP (Public-Private Partnership)..."

 

"TO RULES THAT THOSE WHO SET THEM DO NOT FOLLOW..."

Economist Mahfi Eğilmez, in his social media post, criticized the scope of the austerity and said the following:

"I quickly reviewed the austerity package prepared for the public sector. There are correct measures. However, as long as the austerity measures do not cover Palace expenditures, its planes, its convoys, and its security details, it will not be of much use.

No one follows rules that those who set them do not follow."

 

"WHERE IS THE AUSTERITY?"

Economist and writer Mustafa Sönmez, drawing attention to the 2.4 trillion lira deficit, stated, "Joker Minister Mehmet Şimşek is announcing a so-called austerity package, but there is not a single figure on how much of the 2.4 trillion TL deficit these measures will patch. Especially, there is not a shred of mention of Build-Operate-Transfer concessions. You are giving 5-6 billion dollars a year just for roads and bridges. Where is the austerity in this? There is none!"