TURKEY: Budget forecasts record deficit for 1994

14 January 1994
NEWS

Parliament has passed the government's 1994 budget, which forecasts a record deficit of TL 192 million million ($13,200 million). There were 245 votes in favour and 172 against. Independent economists predict that the deficit will work out much higher as the government failed to reach budgetary targets set for 1993.

The budget puts total spending at TL 819 million million ($58,100 million). Transfer expenditures including debt servicing will account for 49 per cent, personnel costs 32.5 per cent, and investment expenditure totals 10.3 per cent. Revenues are forecast at TL 627 million million ($44,500 million), but this will depend on the implementation of a major tax reform package.

It is assumed that growth in gross national product (GNP) will be 4.5 per cent in 1994, down from the high 7 per cent now estimated for 1993; and that annual inflation will be about 48 per cent, compared with 1993 levels of about 70 per cent. However, the Organisation for Economic Co- operation & Development (OECD) has warned that inflation will continue to rise in 1994 before slowing in 1995. Exports in 1994 are expected to total $17,000 million against imports of $30,300 million.

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