Minister Şimşek claimed it was the lowest budget deficit in history! '2.6 times higher...'

Minister of Treasury and Finance Mehmet Şimşek made statements regarding the budget deficit to an AA reporter the other day.

Prof. Dr. Duran Bülbül evaluated Şimşek's statements regarding the budget deficit.

Bülbül said, "Minister Mehmet Şimşek continues to mislead the public and, consequently, the market by managing perceptions."

"BELOW THE MTP"

Minister Şimşek pointed out that the budget deficit was 1 trillion 375 billion lira, approximately 258 billion lira below the Medium-Term Program (MTP) expectations, and stated, "The ratio of the budget deficit to national income was 5.4 percent, which is 1 point below the MTP projections of 6.4 percent. When earthquake expenditures are excluded, this ratio is at the 1.7 percent level."

Şimşek noted that while 762 billion lira in expenditures were projected for earthquake-related needs, the year-end expenditure amount reached 950 billion lira, and added 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."

"THE LARGEST BUDGET DEFICIT IN HISTORY..."

12punto columnist Prof. Dr. Duran Bülbül evaluated Minister Şimşek's statements.

Stating that he announced the largest budget deficit in history as the lowest budget deficit in history, Bülbül used the expressions, "The budget deficit is not 1.4 trillion TL, but 2.4 trillion TL. That is, the budget deficit is 53 percent."

Bülbül also added the following:

"The Minister said that if we exclude earthquake expenditures, the budget deficit is below the Maastricht criteria. According to the Maastricht criteria, the budget deficit should not exceed 3 percent of the Gross Domestic Product (GDP); however, the 2023 budget deficit is 8 percent of the GDP. This means that we are 2.6 times above the Maastricht criteria. In conclusion, Minister Mehmet Şimşek continues to mislead the public and, consequently, the market by managing perceptions."