Turkey  runs out of budget by June!

Turkey’s government has submitted a proposal to parliament for a supplementary budget of some 1 trillion lira ($57.74 billion) to cover rising costs of tackling a currency slide, soaring energy prices and rampant inflation, the state-run Anadolu news agency said on Monday.


Sources had told Reuters this month that Ankara was mulling pushing a supplemetary budget through parliament before summer recess.


The budget burden has grown due to the rising energy costs, public sector wage and pension hikes, the lira’s slump and the related rising cost of a deposit protection scheme launched late in 2021 to mitigate the effects of a currency crisis.


Anadolu reported the figure, citing a text of the budget proposal signed by President Tayyip Erdogan.


“Significant rises in general prices have taken place as a result of the economic and geopolitical developments around the world and in our country, thus a need has emerged to also make increases to budget payments,” it quoted Erdogan as saying in the proposal.


Editor’s Note:  Erdogan requested a supplemental   budget of TL1.080 billion.


The proposal will have to be passed first by a commission in parliament and later by the general assembly. Parliament usually breaks from early July to early October.



Turkey’s Slow-Motion Currency Crash


To help households cope with rising costs, Ankara introduced in 2021 fuel, electricity and gas subsidies worth 200 billion lira ($11.6 billion), with 300 billion lira seen this year, but energy costs have risen much faster than anticipated.


Daily Sabah:  Turkey signals wage hike to help workers amid soaring inflation




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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.