Inflation message from Minister Nabati

The 2023 Income Budget, the Articles of the 2023 Central Government Budget Law Proposal, the 2021 Central Government Final Accounts Law Proposal Articles were accepted by the Parliamentary Plan and Budget Committee.

After CHP Konya MP Abdüllatif Şener asked Nureddin Nebati to repeat his words: “The heterodox approach, which represents an epistemological break with neoclassical economic thought, is gaining more importance with neuroeconomics and behavior that are gaining more and more importance today”, the Treasury delivered the closing speech and Finance Minister Nureddin Nebati did not reject Şener’s request.

“TURKEY HAS SHOWN AGAIN HOW STRONG ITS MACROECONOMIC FOUNDATIONS ARE”

In his closing speech, Nabati said:

* “We are going through a period of experiencing the most challenging conditions globally since the 2008 financial crisis. In the epidemic process that emerged in early 2020, countries were first tested on their ability to take urgent decisions and then to compensate losses. Apart from the public health aspect of the event, Turkey has shown an exemplary performance in the field of economy. So much so that Turkey has once again shown how solid its macroeconomic foundations are in the face of an unprecedented global shock.

* Global supply chain problems caused by the epidemic in 2021, rising commodity prices and production disruptions; It has created risks for investment, employment and economic growth. Despite all the negativities, economic growth reached 11.4 percent in 2021, the highest level in the last 50 years. Records were broken in exports, investments in machinery and equipment continued uninterrupted and the increase in production was sustained by the increase in employment. However, thanks to the acceleration of exports and the recovery of tourism in 2021, the relationship between the current account deficit and national income decreased significantly, and our country ranked among the first OECD countries in terms of employment.

“THE ENERGY CRISIS CAUSED THE INCREASE IN WORLDWIDE INFLATION RATES”

* Expansive policies in the post-pandemic period, deteriorating supply chains, rising global freight prices, and the energy crisis deepened by the Russia-Ukraine war have led to rising inflation rates on a global scale . Inflation has become a major problem on a global scale that all countries are trying to overcome. In this process, where global difficulties increased and predictability decreased, inflation in our country also increased. Although factors on the supply side and on the cost side, such as exchange rates and import prices, were decisive in this evolution, the acceleration in energy, transport and food prices drew attention, They are very sensitive to international prices.

“WE TAKE ALL THE NECESSARY MEASURES TO IMPROVE THE LEVEL OF WEALTH OF OUR CITIZENS”

* We have implemented many measures to protect the purchasing power of our citizens against inflation. We make improvements in the wages and salaries of our employees and retirees. We have removed taxes from all wage earners up to the minimum wage. We have reduced VAT on basic necessities, especially food and electricity.

* We continue with high-rate subsidies to minimize price increases derived from the global energy crisis for our people, and we offer support for the consumption of electricity and natural gas to our families in need. In addition, foreign trade measures were taken to guarantee the security of the food supply and agricultural support and credit facilities backed by Treasury interests were expanded.

* We have taken and will continue to take all necessary measures to increase the level of well-being of our citizens while fighting inflation with determination.

“THE COURSE OF THE TURKISH LIRA INCREASES IN REAL REGARDING THE NEW YEAR WITH THE CONTRIBUTION OF THE KKM”

* In order to strengthen financial stability, we launched the Currency Protected Deposits and Participation Accounts (KKM) application in December last year. In the recent period, when global financial conditions have become so tight and many currencies have lost value against the dollar, the course of exchange rates has stabilized significantly compared to previous periods with the contribution of KKM, while that the course of the Turkish lira has increased. in real terms with respect to the beginning of the year.

* Thanks to the interest and support of our citizens in the complementary products that we have ordered together with KKM, the disaster scenarios drawn for the Turkish economy have come to nothing. In accordance with the objectives of the Turkish economic model, we give priority to investment, employment, production and exports.

“EMPLOYMENT RECORD HAS REACHED HIGH LEVELS”

* Thanks to this, economic growth also maintained its balanced outlook in 2022 and employment reached historically high levels. In the coming period, we will continue to work with all our might for a prosperous Turkey that produces high added value and rises to higher levels on a global scale. Together we will take important steps within the framework of the vision of the ‘Century of Turkey’ announced by our Honorable President, which aims at the full development of our country.

* We are finalizing the Plan and Budget Committee negotiations on the Central Government Final Accounts Bill of 2021 and the Central Government Budget Bill of 2023. On behalf of our President and Government, I would like to express my gratitude to the esteemed Chairman and members of our Plan and Budget Committee for all the dedicated work done thus far, and to all who have made valuable contributions. We view the 2023 Budget the same way we’ve viewed our nation’s budgets, which come from the sweat of our nation, as entrusted to us by our nation.” PHOENIX