Turkish finance chief stresses commitment to saving, fiscal discipline

A top Turkish economy official stressed on Sunday the commitment to saving in the public sector as he evaluated the figures for 2024-2025, pledging to direct resources to priority areas and continue with fiscal discipline measures.

“Our determination for saving in the public sector is yielding results,” Treasury and Finance Minister Mehmet Şimşek said in a post on X.

“As part of these measures, we have achieved savings of TL 484 billion (around $10 billion in current prices) in the 2024-2025 period. This amount exceeds the total budget of six ministries for 2026,” he added.

The minister reflected on the figures published by the Anadolu Agency (AA) earlier during the day.

Accordingly, as part of the austerity measures implemented under the leadership of the Treasury, savings of some TL 484 billion were achieved in 2024-2025, exceeding the total budget of six ministries this year, the AA report said.

Based on the general circular on the measures published in 2024, including in many areas from vehicles and service buildings to fixed assets and energy use in the public sector, it was found that expenditure controls were strengthened.

“During this period, unlike previous practices, a strong monitoring, auditing, reporting, and enforcement model was implemented,” the report suggested.

“Except for earthquake and essential areas, cuts were made in appropriations, and expenditure controls were strengthened,” it added.

The report also suggested that an information system was developed within the ministry, enabling public administrations to enter data and make reports. The system is said to closely monitor the austerity practices of 260 public administrations.

The share of expenditures within the scope of the austerity circular, excluding interest and earthquake expenditures, in the budget decreased from the long-term average of 4.6% to 3.1% in 2024 and to 2.9% in 2025, the report said.

Last month, Şimşek said that Ankara expects its annual budget deficit to have narrowed to around 2.5% of gross domestic product (GDP) as of June, down from 2.9% in 2025, as he cited stronger fiscal discipline.

Figure exceeds budget of 6 ministries

Accordingly, the savings achieved in two years reached TL 484 billion at current prices.

This figure exceeds the total budget of six ministries, namely the Ministry of Environment, Urbanization and Climate Change, the Ministry of Foreign Affairs, the Ministry of Energy and Natural Resources, the Ministry of Culture and Tourism, the Ministry of Industry and Technology, and the Ministry of Trade, in 2026.

Moreover, the report identified that the costs of revenue losses due to the so-called sliding-scale system that was introduced earlier this year to curb the increase in energy prices were less in comparison to the savings achieved.

“Under this system, a revenue loss of TL 372 billion is projected at today’s prices by the end of the year. Therefore, it was observed that the savings achieved exceeded the cost of the sliding-scale system,” the report said.

“Strengthening fiscal discipline and using resources more effectively and efficiently is our main priority,” Şimşek told AA.

“For this purpose, we will continue to implement savings measures and expenditure controls strongly and resolutely,” he said.

“In this way, we will continue to direct the fiscal space we obtain to priority areas and support the disinflation process.”

DAILYSABAH