Seyfettin Gürsel and Zümrüt İmamoğlu
On October 10th, the government announced its Medium Term Programme (MTP) for the 2011-2013 period. Earlier this year, deputy prime minister Ali Babacan had proposed a fiscal rule to reduce Turkey’s budget deficit and its debt to GDP ratio in the long run. Later, however, the Fiscal Rule was denounced by the prime minister Tayyip Erdoğan who put his objection in words on TV saying “There is no need to create an IMF inside”.
This research brief compares the official budget deficit target announced in the MTP to that of the proposed (and denounced) Fiscal Rule. Had the Fiscal Rule actually legalized what would Turkey’s budget deficit target be and how does it compare to that of the MTP? The short answer is – it would have been the same.
doc. ResearchBrief094
pdf. ResearchBrief094