A draft budget for 1996 forecasting economic growth of 4.5 per cent for the year has been submitted to parliament, as constitutionally required by Prime Minister Tansu Ciller’s caretaker minority government (see below). The budget forecasts a 58 per cent increase in the consolidated deficit to TL 410 million million.

Inflation is predicted to be 45 per cent in 1996, about half the current rate. The exchange rate is forecast to average $1=TL 62,855.

Over the same period, the budget envisages a 63 per cent increase in personnel expenditures to TL 800 million million, and a 108.4 per cent increase in investment spending to TL 189.6 million million. Interest outlays will rise by 58 per cent to TL 940 million million.

Revenues overall will increase by 68 per cent to TL 2,370 million million. Taxation receipts will rise by 65.1 per cent to TL 1,800 million million.

The foreign trade deficit is expected to increase over the period by 22 per cent to $13,300 million. Exports are forecast to rise by 13.6 per cent to $24,200 million, and imports by 16 per cent to $37,500 million.