The 2014-2016 Period Medium Term Fiscal Plan was prepared by the Ministry of Finance in line with Medium Term Program in a way to include central government budget total revenue and expenditure estimates, targeted deficit, borrowing and appropriation proposal ceilings of public administrations for the upcoming three years, and it has been finalized by the High Planning Council.
The main aim of the economic policy of 2014-2016 is to reduce the current account deficit gradually and to increase growth by minimizing the effects of ambiguity in the global economy. Therefore, the priorities are to increase domestic savings, steer existing resources into productive areas, raise the efficiency level of the economy, increase employment, decrease inflation and sustain a powerful stance in public finance.
During the stated Fiscal Plan period, the fiscal policy will be implemented in a way to support the economic stability, increase domestic savings and control the current account deficit in line with the abovementioned goals and priorities. In the period of 2014-2016, the sustainability of the fiscal policy will be tried to ensured by keeping the public sector borrowing at reasonable levels, and maximum efforts will be made in order to maintain the acquisitions in the field of public finance in the upcoming periods.
The 2014-2016 central government budget to be prepared based on the Medium Term Fiscal Plan aims to keep the primary interest expenditures under control in order to encourage the use of resources in public administrations efficiently and economically, to prioritize the expenditure programs and to increase the effectiveness of the expenditures.
In this regard, the structural reforms will be used as an instrument that supports the financial discipline in the 2014-2016 period. The structural rationalization studies intend to have expenditures in an effective, efficient and timely manner by revising the recurrent inefficient expenditures each year will be maintained. The financial area to be obtained by liquidating the public administrations regarding the deprioritized activities and projects will be used in the public infrastructure investments, incentives and R&D subsidies that will support growth.
Basic macroeconomic indicators, revenue and expenditure estimates, targeted budget deficit and deficit financing as well as appropriation proposal ceilings of public administrations within the scope of general government and of special budget administrations, all of which will be taken as basis in 2014-2016 period central government budget preparation process, are included in the subsequent parts of Fiscal Plan. Public administrations will determine their institutional priorities in line with multi-annual budgeting approach and prepare their appropriation proposal ceilings for the years 2014, 2015 and 2016 by taking as basis the policy priorities, macroeconomic indicators and appropriation ceilings included in Medium Term Program and Medium Term Fiscal Plan.
Click here to access the Official Gazette issue which includes the Medium Term Fiscal Plan 2014-2016.
