A draft budget for 2020 has been prepared in line with the 5 percent economic growth and 8.5 percent inflation targets set out in the government’s New Economy Program, Naci Ağbal, the head of the Strategy and Budget Directorate, has said.
In a press meeting in the capital Ankara where he unveiled the details of the 2020 budget, Ağbal underlined that fiscal discipline, which is one of the main pillars of the government’s economic policies, will be maintained.
“We forecast that the budget deficit will be below 3 percent of the GDP next year and a gradual improvement in the public debt stock to national income. We will take all measures and do whatever is necessary to this end,” Ağbal said.
The budget forecasts a budget deficit of 138.9 billion Turkish Liras ($24 billion) for next year, while budget expenditures and revenues are seen at 1 trillion liras and 957 billion liras, respectively.
The central government budget balance posted a deficit of 85.8 billion liras in the first nine months of 2019.
The government’s year-end budget deficit target is minus 80.6 billion liras with 880.4 billion liras in revenue and 960.97 billion liras in expenses.
Last year, Turkey’s central government budget balance showed a deficit of 72.6 billion liras.
Ağbal noted that 16.1 percent of the 2020 budget is earmarked for education while the share of health spending is 17.2 percent.
He added that another 141.1 billion liras will be spent on defense and security while 69.5 billion liras have been allocated for social welfare spending next year.
Some 33.4 billion liras earmarked in the budget will be used to support the agriculture sector in 2020, Ağbal said.