Özdemir Berova: A Deficit of 6.65 Billion TL is Projected for 2024

According to Rana Sarro’s report in Evrensel Kıbrıs, Minister Berova addressed allegations that the Ministry of Finance has resorted to borrowing due to an inability to balance income and expenditure.

Minister Berova clarified that all sector payments were made until June, and efforts to maintain the income-expenditure balance and cash flow were ongoing. He provided details about the borrowing in June, which was required to address financial commitments.

Budget Management and Borrowing

Minister Berova emphasized that significant efforts are being made to collect revenues promptly within the 2024 budget framework. He listed the types of payments successfully managed so far, including contractor payments, transportation, scholarships, agriculture, expropriation, and health payments. He stated that there had been no borrowing until June, but a borrowing became necessary that month. He noted that long-standing chronic issues were being addressed under the directives of the Prime Minister, although unforeseen expenses occasionally arise.

Unforeseen Expenses

Minister Berova cited an example of unforeseen expenses with the Eastern Mediterranean University's financial sustainability efforts. A commitment of approximately 1 billion TL, including 400 million TL in cash, was made, and a cash flow of 305 million TL had been provided to the university by early August. He reassured that there was no need for borrowing to cover July salaries and other payments. Despite economic challenges since the pandemic and high inflation, measures like the life cost indexation every four months have been implemented to shield lower and middle-income groups. He mentioned that despite the additional burden on public finances, the Turkish Republic's effective anti-inflation policies are expected to have a positive impact by the end of the year.

Measures Taken

Regarding measures to ensure budget balance, Minister Berova explained that efforts are being made to enhance the automation system for better visibility and control, alongside passing revenue-enhancing laws. He highlighted that all customs areas have been automated and visibility between Customs and Tax Departments has been established. The recruitment of 50 personnel through the Public Service Commission for Customs and Tax Departments was also mentioned as a step to strengthen the workforce.

Minister Berova concluded by reiterating that the projected deficit for the 2024 budget is 6.65 billion TL and expressed hope that the actual borrowing required would be much lower.