site.btaTurkiye Unveils Series of Austerity Measures

Тurkiye’s government Monday announced a series of measures aimed at reducing public expenditure, local media reported.

The purchase of new public service vehicles will be banned for three years, Finance Minister Mehmet Simsek said, as quoted by TRT Haber. He added that exceptions will be made for the health, security, and defence sectors when it is strictly necessary.

The plan also envisages cuts for public-service business travel abroad.

Cocktail parties, business luncheons, and similar events will also be suspended for three years, except when held as part of international meetings and national holiday observances.

The distribution of magazines and calendars as gifts has been banned.

Simsek stressed that this is not the first austerity package and that it will not be the last. "We will review all areas of spending in 2024," he added.

A vehicle lease contract extension will require special authorization. Surplus and old vehicles will be removed. With the exception of the defence and security sectors, personnel transport services will be suspended in places where public transport is available.

The purchase and construction of new buildings will be suspended for a period of three years, except in earthquake-prone areas.

According to the Economim business daily, the new measures could add more than USD 9.3 billion a year to the Treasury.