Turkey To Raise ’03 Budget Surplus Target Above IMF Level

Sener didn’t elaborate on why the government is planning to set a higher surplus target or how far above the IMF level it will be. Earlier, Prime Minister Abdullah Gul said the government wants to prove to financial markets that it is keen to implement the IMF-backed economic program. After a meeting with money and finance officials to draft the 2003 budget, Sener said budget expenses will be less than the initially drafted 150 quadrillion lira. ($1=TRL1,663,000) Sener said the government is also revising its spending programs and cutting expenditure.
He said the gross national product growth target for 2003 will be 5%, annual wholesale price increase at 17.4%, and consumer price increase at 20%. Sener said another meeting will be held Thursday to discuss further budget cuts. The budget draft needs to be endorsed by the cabinet of ministers before being submitted to parliament by Jan. 31. Turkey’s 2003 budget is one of the hurdles it must cross to reactivate its IMF-backed economic program, which has been on hold since October. Daily newspapers Radikal and Vatan reported Wednesday that the IMF is unsatisfied with Turkey’s fiscal policies and that last week it rejected the government’s draft letter of intent, outlining fiscal and monetary pledges. Two IMF officials are currently in Turkey to help the government on the draft budget. The Turkish government, while pledging adherence to the IMF program, is also pursuing populist spending campaigns, analysts say.