Medium term program to focus on single-digit inflation

ANKARA

The cabinet has been working on the Medium Term Program (MTP) for some time, and a roadmap for public sector savings has been developed.

According to the information received, the first objective of the MTP, which updates macroeconomic and structural reform policies, is to reduce inflation to single digits. In this context, it is stated that inflation will be gradually reduced with the MTP, which is expected to be announced in September.

In this context, the Education Ministry and the Labor and Social Security Ministry carried out an analysis of the effectiveness of the state's contribution to vocational training centers. This analysis, which was evaluated as an example at the last meeting of the Economic Coordination Council (ECC), aims to save 20 billion liras by combining some projects in vocational training centers. In addition, the savings analyses of other institutions will be evaluated at the next meeting of the ECC.

New efforts are also being made on the issue of public sector savings, which is one of the most important building blocks of the measures taken to restore economic equilibrium. At the last meeting of the ECC, measures to be taken with regard to public sector savings were evaluated.

Accordingly, it was learned that an impact analysis will be conducted in all public institutions, especially in the ministries. Preparations will be made to merge some projects and make a new program.

"We are reviewing some programs, the real saving is the efficient use of resources,” said officials from the ruling Justice and Development Party (AKP), who asked to remain anonymous.

“This is what we want from public institutions. They should really look at their goals. Is this program serving its purpose? Are there aspects that are being abused? Are there dimensions that can be revised and made more efficient? If they look at that, there are both savings and the program becomes fit for purpose,” officials added.

Regarding the roadmap to be followed in the austerity plan, the officials said serious savings will be made.

“Without reducing its effectiveness, that is, without reducing the work that is suitable for its real purpose, by eliminating certain things, we will both save money in the program and obtain more appropriate output,” they said.

“Impact assessment issues are really important. On a program basis, this was like a case study.”