Minister Şimşek had called for austerity: Half of the last 13 years reached

Public austerity was on the agenda as part of the fight against inflation. Treasury and Finance Minister Mehmet Şimşek had requested that public institutions and organizations comply with austerity rules regarding the acquisition and leasing of real estate, as well as the acquisition and use of official vehicles. However, the rental costs paid for vehicles in 27 months have reached more than half of the total amount paid in the last 13 years.

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Minister Şimşek had called for austerity: Half of the last 13 years reached

As part of the anti-inflation program, supporting the reduction of the budget deficit and the expected issue of austerity in the public sector were on the agenda of President and AKP Chairman Recep Tayyip Erdoğan and Treasury and Finance Minister Mehmet Şimşek.

Erdoğan issued a vehicle circular in 2021 calling for austerity; Şimşek also requested in a circular he sent on July 17, 2023, that public institutions and organizations act in accordance with austerity rules regarding the acquisition and leasing of real estate, and the acquisition and use of official vehicles.

Despite this, when looking at the vehicle rental costs paid, it was noted that austerity was not implemented. 880 million liras were spent on vehicle rentals in the first three months of 2024. The total rental cost paid since 2011 has reached 10.3 billion liras. The rental cost paid in the 27-month period between January 2021 and March 2024 is 5.7 billion liras. In other words, more than half of the total amount paid for vehicle rentals in the last 13 years occurred in the last 27-month period.

AUSTERITY LAW

Since a solution could not be found with the circular, according to information provided by Vice President Cevdet Yılmaz last week, the Ministry of Treasury and Finance and the Presidency's Strategy and Budget Directorate have begun work on an austerity law for the public sector.

The amount paid for vehicle rentals by year is as follows:

2011 89 million 494 thousand TL

2012 158 million 765 thousand TL

2013 220 million 239 thousand TL

2014 375 million 624 thousand TL

2015 417 million 95 thousand TL

2016 549 million 986 thousand TL

2017 557 million 641 thousand TL

2018 549 million 170 thousand TL

2019 562 million 574 thousand TL

2020 565 million 141 thousand TL

2021 552 million 309 thousand TL