The first job of the election winner will be the additional budget.

Presidency An intense economic agenda awaits the winner of the second electoral round. While many problems, especially the exchange rate, interest, inflation, current account deficit, internal and external debt, await a solution, the first job of the new government will be to issue an additional budget or make a new budget. It is estimated that the budget deficit will at least triple due to the heavy burden of electoral commitments, the retirement age (EYT), the earthquake, the increase in interest expenses and salary increases, which will make a new budget of 1.5-2 trillion lire. mandatory. Due to the budget marathon, the new Parliament will have to start with strong budget changes in the heat of summer. The 2023 budget, which was prepared without considering the electoral promises and the size of the EYT, was prepared with an expenditure of 4 trillion 470 billion lira, a revenue of 3.81 billion lira and a deficit of 660 billion lire.

EYT PAYMENTS

The earthquake disaster that rocked the country in February added to the burdens brought by EYT, with new election spending and pledges added every day throughout the year. Calculations show that the deficit of 660 billion lira will at least triple, therefore a new budget of at least 1.5-2 trillion lira must be made to meet the huge need for resources. With the retirement of those of retirement age, SGK had to pay an additional salary to approximately 2-2.5 million new retirees this year. Although the withdrawal process is slow, as the withdrawal process is based on the application date, as the end of the year approaches, hundreds of thousands of EYT affiliates accumulated in March, April and May will receive their accumulated pensions and Christmas bonuses . The additional burden that EYT will bring to this year’s budget is expected to reach 300 billion lira.

The cost of the earthquake is at least 35 billion dollars

It is stated that the cost of the earthquake for the economy, especially for the public budget, will exceed 35 billion dollars even with minimal calculations. The construction of infrastructure, roads and public buildings in place of the houses destroyed by the earthquake brought an additional burden of hundreds of billions to the budget. All these expenses, which cannot be covered by the current budget, will be financed with an additional budget and debt.

Abundant electoral promises will come into play

The election will face strong cost pressure due to the use of public resources on the one hand and the abundantly announced electoral promises on the other. It was promised that a large increase in the salaries of civil servants and retirees would be made in July, especially after the large increase in public workers. Pension and personnel payments, which occupy an important place in the budget, will also be one of the most important expenses of the supplementary budget. Potential increases in the exchange rate after the elections are expected to significantly increase the burden on the budget due to the additional payments to be made to Protected Currency Deposit accounts.