Finance Minister Oral Holds News Conference

ANKARA, Feb 6 (A.A) - Finance Minister Sumer Oral announced on Wednesday the budget deficit as 28 quadrillion 566 trillion lira, and that primary surplus as 12 quadrillion 498 trillion lira.
Finance Minister Oral held a news conference and said financial discipline was respected for the realization of primary surplus which was envisaged for the year 2001.
Pointing out that an extremely healty budget year, that is in line with the targets, was left behind, Oral said it was very important to reach the envisaged targets in primary surplus in the year 2001 which was full of problems.
Oral said ''the 2001 year budget showed a significant performance despite the developments,'' and noted that upwards trend continue in debt interests.
Pointing out that the tax incomes were realized as 51 quadrillion 812 trillion as a result of determined implementations, Oral said 39 quadrillion 768 trillion lira of the incomes was realized as budget deficit.
The entire budget, including debt payments, produced a net deficit of 32,702 trillion lira, Oral said.
Oral said that 1 quadrillion 10 trillion TL which belonged to the social security organizations was the amount recorded due to technical obligations as there was not sufficient allowances in the relevant figure.
Noting that incomes had risen by 55 percent, tax incomes had increased by 50 percent and expenditures had climbed by 81 percent, Oral said that there was a 54 percent increase in non-interest expenditures, 116 percent increase in interest expenditures nad 60 percent increase in non-interest surplus.
Oral said that regarding the non-interest expenditures, there was a 1 quadrillion 583 trillion TL difference between the realization and the total amount of allowances foreseen in budget laws.
Noting that 175 trillion TL of this difference stemmed from the treatment expenditures which are included in personnel expenditures as the medicine prices had risen by 100 percent, Oral said that 25 trillion TL of this difference stemmed from the severance pay which was included in personnel expenditures as more than the expected number of workers had retired.
Oral said that 115 trillion of this difference stemmed from green card payments which were included in other current expenditures, 868 trillion stemmed from tax return, and 360 trillion TL stemmed from the expenditures which were shown as allowances due to external project loans.
Oral said that consolidated budget revenues were 51 quadrillion 812 trillion TL, tax incomes were 39 quadrillion 768 trillion TL, non-tax normal incomes were 7 quadrillion 398 trillion TL, special incomes and funds were 3 quadrillion 977 trillion TL and added budget incomes were 669 trillion TL in 2001.
Noting that when budget incomes in 2001 were compared to those in 2000, tax incomes rose by 50 percent, non-tax normal incomes increased by 112 percent, special incomes and fund incomes rose 30 percent and added budget incomes increased by 68 percent, Oral said, ''so the tax incomes in 2001 was 5.4 percent above the targeted amount.''
Oral added that budget incomes were 49 quadrillion 60 trillion TL, tax incomes were 37 quadrillion 710 trillion TL, expenditures were 79 quadrillion TL, interests were 41 quadrillion 268 trillion TL, budget deficit was 29 quadrillion 940 trillion TL and primary budget was 11 quadrillion 328 trillion TL in 2001.
Oral explained structural change targets in 2002.
Noting that as the Finance Ministry, their vision in 2002 was to fulfil each of their responsibilities for opening of accession negotiations, Oral said, ''we pledge for complete adjustment with all EU acquis related to our ministry until 2004.''
Noting that adjustment with EU meant ''structural change'', Oral said that structural change could not be made without public opinion's approval and interest.
''The aim of this news conference was to have public opinion's interest focused on structural change and adjustment with EU. Our informative works will continue in order to let public opinion to follow the process of change,'' he said.
Stressing that structural change was getting shape over three factors, Oral said that those factors were transparency, participation and explanation.
Oral said that as long as those factors were consolidated, society would gain a functioning democracy and public would gain an influential state structure and tax payers would not hesitate in adjustment with taxes, strengthening the economy.
Oral said that Turkey should have an economy which worked according to market rules and was powerful enough to bear competition in order to become a EU full member.
Recalling that the EU, under the headline of economic criteria, had presented three-lane road map to candidate countries as economic stability, adjustment with EU acquis and administrative capacity to implement this acquis, Oral said that they had gained IMF's support regarding economic stability.
Stating that cooperation with EU had been shaped up and broadended regarding adjustment, Oral added that adjustment laws would help economy work according to market laws and that they had put into practice the projects which would create influential state by receiving the World Bank's support.
Oral said, ''we pledge to start process of European Union full membership negotiations this year and conclude the structural change by the end of 2004, which will provide complete adjustment with the acquis for our ministry.''
Holding a press conference, Oral said that as the Finance Ministry, they were the object of six documents with three international organizations as European Union (EU), International Monetary Fund (IMF) and World Bank.
Noting that they were the collocutor of the EU with Accession Partnership Document, Annual Progress Reports, Turkey's National Program for Undertaking of EU Acquis and Pre-Accession Economic Program, stand-by deal with the IMF and Adjustment Loan with the World Bank, Oral said that common target of the works carried out with these three organizations was EU full membership.
Noting that laws which had been prepared by the 57th government showed that great progress was recorded regarding adjustment with EU, Oral said that those laws prepared the basis of a sound and disciplined public finance, macroeconomic stability, powerful market economy and more influential state management regarding the factors of transparency, participation and explanation.
Stating that preparations for Public and Finance Sector Adjustment Loan to be received from the World Bank were about to be finalized, Oral said that this loan faresaw Public Sector Reform and that Budgetary Reform, Accounting Reform, Personnel Reform and Tax Reform were the Public Sector Reform's parts which directly concerned his ministry.
Responding a question about the committent in the letter of intent given to the IMF for not reflecting inflation difference to civil servants' salaries, Oral said that they had always increased civil servants' salaries according to the inflation rate. ''Also today, we are not thinking of giving salary to civil servants below the inflation. There is not such a commitment. There is a rule in the Budget Law and it will be implemeted exactly in the same way.''
Stressing that the state should work more rationally, Oral said that within this framework, a work would be carried out on personnel regime.
Noting that the state would employ necessary workers at necessary places, Oral said that he agreed with the opinion that there was not a sufficient level of salary in Turkey and at the same time there was not a just salary regime. Oral recalled that a committee comprising three ministers had been set up to coordinate the works on this matter.
Responding a question about the new letter of intent's social effects, Oral said that all economic policies basically targeted human beings.
Stressing that citizens had made great self-sacrifices, Oral said that also the state would make self-sacrifices and spend every lira appropriately.
Responding questions about real-estate tax, Oral said, ''a committee comprising four ministers was set up. We could not discuss this matter as the earthquake was taken up during the latest Council of Ministers meeting. We will discuss it in the next meeting.''
Responding another question about decrease in value added tax (TAX) on natural gas and medicine, Oral said that the five percent VAT rate would be decreased to three percent together with special consumption tax.