TEPAV: Fiscal Policy Is Not Providing Adequate Support for Inflation Combat Strategies

The fourth issue of the TEPAV Budget Monitoring Bulletin has been published. Based on data from the first nine months of 2024, it is highlighted that the primary budget deficit has increased by 109.5% compared to the same period in 2023, while the non-interest budget deficit has nearly tripled during the same period.

The bulletin forecasts that despite the recently announced "Public Savings and Efficiency Package," expenditures in 2024 will exceed the figures stated in the budget in nominal terms. Furthermore, although tax revenues have slightly increased due to additional income from the tax package and the unexpectedly high inflation, it is expected that by the end of the year, the budget deficit will decrease only by approximately 300 billion TL to around 2.3 trillion TL (5.3% of GDP).

In this context, it was noted that the fiscal policy does not provide sufficient support for the fight against inflation.