Turkey postpones fiscal reforms, may tweak goals

Turkish Industry Minister Nihat Ergun stated that Turkey has delayed implementation of fiscal reforms and may loosen their parameters, potentially putting at risk medium-term goals for cutting its budget deficit and public debt. Other government sources indicate that Turkey may delay implementation of the law to 2012, after failing to pass the bill through parliament before the start of summer recess on July 22.

When it was announced in early July that the government would not seek passage of its “fiscal rule” legislation before the summer recess, it was asserted that fiscal discipline was nevertheless assured by a continued commitment to similarly restrictive medium-term goals. The Industry Minister’s statement now raises the possibility that the government is re-thinking its medium-term fiscal program in the interest of more liberal, pre-election spending.

Source: Hurriyet Daily

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