ANKARA - Economy administration targets to send a draft on budget cut to compensate nearly 3.3 quadrillion Turkish liras (TL) deficit stemming from increase in pensions and minimum wage to the parliament in the beginning of February at the latest.
Sources said on Monday that gross burden of increase in pensions and minimum wage was between 3.8-3.9 quadrillion TL and the net burden was expected to be between 3.2-3.3 quadrillion TL due to increase in income tax.
Sources said the IMF wanted the government to take compensating measures of nearly 3 quadrillion TL to reach income target.
Meanwhile, economy administration says the amount of deficit had hot become clear yet and it might decrease. Sources said that IMF had advised the economy administration to make price increase in public goods and services including fuel oil, electricity and natural gas.
Meanwhile, current deficit in 2003 is estimated to be about 6 billion U.S. dollars and the current deficit target of 7.6 billion U.S. dollars in 2004 is expected to be maintained. Increasing total exports to 53-54 billion U.S. dollars and total imports to 78-79 billion U.S. dollars in 2004 is on the agenda of the economy administration. The program target in 2004 is 51.5 billion U.S. dollars for total exports and 75 billion U.S. dollars for total imports.
Sources added that alternative studies on compensating measures would be negotiated in February when the second phase of the seventh review of economic program with the IMF would be carried out.
(MS-AY) 19.01.2004