Treasury and Finance Minister Mehmet Şimşek's 'restrictions' have been revealed!

Treasury and Finance Minister Mehmet Şimşek had sent a circular regarding austerity measures in July after taking office.

In this circular, emphasis was placed on reviewing all expenditures except for earthquake-related costs, taking the necessary steps to ensure the measures can be implemented immediately, and ensuring the follow-up of savings without compromise.

According to a report by the Türkiye Gazetesi, which is known for its proximity to the government, the austerity measures were not implemented at the desired level despite this circular. Following this, the introduction of new measures that would involve 'tightening the belt' of the public sector came to the agenda. Minister Şimşek provided information about the new measures to be implemented at the latest Strategy Board meeting of the AKP.

Şimşek explained that not only will requests for additional appropriations be rejected, but cuts will be made in all expenditure items and there will be a certain percentage of reduction in the budget of every institution.

CUTS WILL COVER MANY HEADINGS

According to the information obtained, these cuts will not only cover the areas of vehicle and building procurement or leasing, but will include many headings from stationery to electricity, and from fuel to healthcare expenditures. In particular, restrictions will be imposed on the use of official vehicles. Cuts will also be made in expenses such as communication costs, personnel assignments, press and publication expenses, and the purchase of stationery and fixtures. Furthermore, the budgets of public institutions for representation, ceremonies, hospitality, promotion and personnel expenses, energy and water purchases, and expenses related to personnel shuttle services will also be reduced.

EXCEPTIONS WILL BE APPLIED

Additionally, there will be no public-led investments; only investments with a physical completion rate of over 70 percent that contribute to the economy in the short term will be supported. Investments in logistics, agriculture, irrigation, and the reconstruction of the earthquake zone will not be affected by the cuts.

''STEPS WILL BE TAKEN TO REDUCE IMPORTS IN THE HEALTHCARE SECTOR''

In the presentation Treasury and Finance Minister Mehmet Şimşek made to the AKP Strategy Board, he said, “In addition to rejecting requests for additional appropriations, our main goal is to shrink existing expenditure budgets. Healthcare expenditures, in particular, need to be reduced. For this, the use of domestic medicine must be increased. Steps will be taken to reduce imports in the healthcare sector.”

''OUR GOAL IS TO GET RESULTS''

While stating that they will not compromise on the economic program, Şimşek assessed, “Our goal is to get results by implementing the program completely. We must keep inflation below 40 percent by the end of the year with strict measures. If we drop below 40 percent, there will also be a psychological effect. Even if it is 39 percent, it is very important for us.”