Şimşek's inflation target is 21 percent: ''Turkey's prosperity level has increased''

Speaking at the 7th Ordinary Congress of the AK Party Ankara Women's Branch, Şimşek drew attention to the progress made in the fight against inflation. Şimşek stated that inflation, which was 65 percent in 2023, was reduced to 44 percent last year. The Treasury and Finance Minister stated that the necessary policy set has been established to reach the 21 percent target in inflation this year.

Minister Şimşek stated that they have reduced the fragility of the lira by significantly reducing Turkey's current account deficit, and noted the following:

''Our reserves have reached record levels both in gross and net terms. We have also reduced the Currency Protected Deposit scheme from 144 billion dollars to under 30 billion dollars.''

Emphasizing that spending discipline was achieved in 2024, Şimşek made the following statement:

''Last year, while our budget was 100 liras, we did not even spend 97 liras. With this discipline, we are directing our resources to education, health, and social assistance. The state covers 60 percent of households' electricity bills and 63 percent of their natural gas bills. As of February, we will remove subsidies that affect the wealthy.''

The raises made to pensions in Turkey were not reflected in the January salary payments. Şimşek did not make any statement regarding the issue.

WHY DID SALARIES INCREASE BY THOUSANDS OF LIRAS?

Minister Şimşek emphasized that Turkey's resilience against external shocks has been increased and the level of prosperity has been raised through the reforms made and steps taken. While Şimşek also reported that civil servant and pension salaries have increased by thousands of liras, he did not mention that salaries increased due to inflation.

The Treasury and Finance Minister also argued that renewable energy should be put into operation alongside coal resources. Reminding that the minimum wage was 184 liras before the AK Party governments and has risen above 22 thousand liras today, Şimşek continued his words as follows:

'The lowest civil servant salary has risen from 392 liras to 44 thousand liras, and the lowest pension has risen from 66 liras to 14 thousand 500 liras.'

However, Şimşek did not provide information regarding real salary increases adjusted for inflation. The high inflation experienced in Turkey has rendered the figures announced as 'raises' meaningless. Although real wages increase numerically every year, the wages received by employees and retirees decline every year when purchasing power is taken as a basis.

Stating that the budget deficit caused by the Kahramanmaraş earthquakes will be reduced starting from next year, Şimşek said that their work on this issue continues.

News Source: 12punto