Cevdet Yılmaz and Mehmet Şimşek announce the Public Savings Package at the 'Palace'! Here are the measures taken...

Public attention has turned to the Public Savings Package to be announced today.

Vice President Cevdet Yılmaz and Minister of Treasury and Finance Mehmet Şimşek announced the details of the Public Savings and Efficiency Package at the Palace.

#Live: Vice President Cevdet Yılmaz shares the “Public Savings and Efficiency Package” with the public at the Presidential Complex https://t.co/cDayS1cngm

— AA Live (@AACanli) May 13, 2024

Highlights from Yılmaz's statements:

"Recent developments have revealed the need to take steps in a broader framework regarding austerity measures.

We need to spread the culture of saving.

The package we are presenting today is one we have put forward in a holistic framework; we will share new packages as various preparations are put into effect and the time comes.

With our public savings program, we are not only reducing non-essential expenditures. At the same time, we are basing our approach on efficiency in public consumption and investment expenditures.

We will carry out more projects with fewer resources.

Our President stated after the May 6 Cabinet Meeting that a culture of saving would be initiated. On May 7, our President again stated that we must produce and export to new markets while also saving.

Among the reasons for this package are, firstly, our need to strongly heal the wounds of the earthquake, and secondly, our determination to fight the inflation that has occurred all over the world after the pandemic.

We need to spread the culture of saving. We are basing our approach on efficiency in public consumption. We aim to produce more results with unit resources by using new technologies.

The cost of the earthquake has reached 104 billion dollars. Although these allocations will decrease, they will continue in the coming years. A large part of the deficit while preparing this year's budget stems from the earthquake.

Our new package supports the determined fight we are waging against inflation. The Medium-Term Program (OVP) has also been shaped within this framework. We will begin to see the results of the OVP's practices aimed at reducing inflation by the end of this year. With this package and our subsequent work, we will try to pull the ratio of the budget deficit to national income below expectations. There is a 6.4 percent estimate for this year; with these measures, we want to reduce it to 5.2 percent, as we did last year.

We expect the support of all groups, regardless of party affiliation, on issues that require legal regulation.

"THIS IS NOT OUR FIRST SAVINGS PACKAGE, NOR WILL IT BE THE LAST"

Taking the floor after Yılmaz, Minister Şimşek stated that the program's priorities are "price stability, fiscal discipline, sustainable current account deficit, and structural transformation."

Noting that they are focusing on 8 priority areas in public savings, Şimşek said, "This is not our first savings package, nor will it be the last package." Şimşek noted that many new steps will be taken in the coming periods. 

Şimşek also stated that if those who do not comply with the austerity measures are identified, there will be a "process of accountability and sanctions." 

Şimşek said the following:

"Our most important priority is to stop the cost of living from being a problem. That is, to reduce inflation to low single-digit figures. Of course, work in the fight against inflation is being carried out in harmony. We will contribute to the disinflation process with the package we will announce today and the additional measures we will announce soon. We prepared the package with this perspective. One of the most important features of AK Party governments is fiscal discipline. When you look at the 20-year performance, you will see this. This is not our first savings package, nor will it be the last package. We will take many steps in the coming period. There are 3 important issues. We aim to save by aiming to increase efficiency in accordance with the OVP. There will be strong monitoring and reporting. Finally, it will cover all institutions."

DETAILS OF THE PUBLIC SAVINGS PACKAGE

• Limits will be placed on the number and use of vehicles in the public sector. No new vehicles will be purchased or leased for 3 years. 
• New personnel recruitment in the public sector will be limited to those who retire. For 3 years, new personnel will be recruited to the public sector only to the extent of those who retire. A flexible and remote working model will be developed in the public sector.
• We are placing a limit on the board membership fees of public employees. Only one board membership fee can be collected, and we will set an upper limit on these fees.
• Vehicles that are surplus to requirements and have completed their economic life will be liquidated. Except for defense and security, public personnel shuttle services will be abolished in places with public transportation.
• The use of vehicles from non-budgetary sources will also be subject to strict rules. The use of foreign-origin vehicles will be prohibited, except for those permitted by law.
• The purchase and construction of new service buildings will be stopped for 3 years. No new buildings will be rented. The purchase/construction of new housing and social facilities will be prohibited. Existing facilities will be brought into the economy.
• The foreign organizations of ministries will be reviewed within the framework of needs. The entire provincial organization will be reviewed based on efficiency.
• In-service training, meetings, etc., activities will be held in public facilities. Temporary foreign assignments will be limited. No transfers can be made to this item from other allocations.
• LED conversion will be accelerated in street and road lighting. Energy efficiency will be increased in public buildings.
• The transition to the e-correspondence system will be completed. The transition to an electronic system will be made for notifications. Institutional archives will be moved to an electronic environment. Documents for promotional purposes such as publications, reports, etc., will not be printed.
• A 25 percent cut will be made in representation and promotion allocations. Except for international meetings and national holidays; activities such as trips, cocktails, dinners, etc., will not be organized. Promotional gifts will be prohibited. Fixed asset purchases will be stopped for 3 years.
• A 10 percent cut will be applied to goods and service procurement allocations, and a 15 percent cut will be applied to investment allocations. Permanent expenditure programs based on one-time income cannot be initiated. Inefficient expenditures will be ended.
• Prioritization will be made in public investments. Investment projects with physical progress over 75 percent, projects with earthquake risk, projects planned in the earthquake zone, projects that increase food supply, green and digital transformation, and OIZ port-railway connection projects will be prioritized. There will be no new projects except in mandatory cases.
• The monitoring and follow-up of the measures will be provided by the Ministry of Treasury and Finance and the administrations. All public personnel, without exception, will be obliged to comply with the announced measures. In the follow-up system where monitoring, auditing, reporting, and sanction steps will be applied, administrative sanctions and fines will be applied if necessary.

Details to follow...

News Source: 12punto