ANKARA - The target of 6.5 percent primary surplus for 2004 has been reached to a great extent. The issue was taken up during meetings with International Monetary Fund (IMF) which continues studies on the sixth review in Turkey on Tuesday.
Sources said that Finance Minister Kemal Unakitan and IMF delegation headed by Turkey Desk Chief Reza Moghadam discussed developments in 2003 and budget targets for 2004 in detail in their meeting the same day.
A high level bureaucrat said that the target of 6.5 percent primary surplus for 2004 was reached to a great extent and stated that a little margin has been left. The bureaucrat said, ''we are working to balance figures. We are discussing what will be balanced with what thing. From where it will be made? It will be definite within two days.''
Finance Ministry official said that several measures were brought onto the agenda and stated that taking additional motor vehicle tax and additional property tax for 2004 was not brought onto the agenda. The official said that however luxurious consumption tax would probably continue.
IMF side explained its concerns over arrangement on investment incentives which will be given to provinces whose gross domestic product is lower than 1.500 U.S. dollars per capita.
Finance Ministry officials said that it would not cause loss in tax and stated that it was out of question to end current taxes with this arrangement. Officials said that investments which would be made in those provinces would increase employment and revive economy. Economy officials said that the government was determined for giving tax incentives to underdeveloped regions.
The situation of social security institutions was also discussed in meetings with IMF. Both Finance Ministry officials and Treasury officials said that allocation from the budget would be made to social security institutions in 2004 as well.
(EÖ-Öª) 07.10.2003