ANKARA - State Minister Ali Babacan said on Monday that they had revised current deficit as 6.1 billion U.S. dollars for 2003.
Babacan held a press conference that they expected the main source of growth in 2003 to be ''rise in special consumption and fixed investments.''
The industrial production had a strong performance in the first four months of this year, Babacan said.
Babacan noted that consumer and investor confidence would increase and reaching growth target would become easier with firm implementation of program.
''As a reflection of rise in food and oil products in the first months of this year, inflation in consumer prices index was a little bit above the expectations. However, we believe that oil prices and foreign exchange rate developments in following period and inactive capacity target will help keeping the year-end target. The April inflation rate strongly supports this estimation,'' Babacan said.
Babacan stated that the current deficit which had earlier been estimated as 3.7 billion U.S. dollars was revised as 6.1 billion U.S. dollars.
That change was made as a result of the joint work of the officials of the Treasury, State Planning Organization (DPT), and International Monetary Fund (IMF) and because ''Turkish lira (TL) gained real value, private sector demand was stronger than expected and because of negative effects of Iraq war on tourism revenues'', Babacan pointed out.
Babacan said that three-month balance of payments performances confirmed those expectations.
Current public finance figures showed that total public sector non-interest surplus target foreseen for the end of April was kept, Babacan noted.
Babacan stated that there were some deviations from the dates foreseen in the structural reform program and they expected the legal arrangements and structural reforms to be completed as soon as possible.
''Laws regarding social security reform and especially legalization of bills on Social Security Agency (SSK), Social Security Agency for the Self-Employed (Bagkur) and Labor Agency (Iskur) as soon as possible are of utmost importance. The law on direct foreign investments covering the arrangements to improve labor atmosphere has been taken onto the agenda of the parliament this week,'' Babacan said.
Babacan added, ''also, the bankruptcy law which will contribute to a robust banking system and development of labor atmosphere is of priority within our program. Second direct tax reform package and work on public finance management and control law will also be concluded soon. It will be brought onto the agenda of the parliament by the Finance Ministry. Our work on rationalism of public employment also continues determinedly.''
(BRC-UK) 02.06.2003