Transportation gets lion’s share in public investments

ANKARA

Some 32 percent of public investments planned for 2024 will go to transportation and communication, the government’s Investment Plan published in the Official Gazette has shown.

The government allocates 319 billion Turkish Liras ($10.6 billion) for a total of 773 main projects to be carried out in the transportation and communication sector this year.

A total of 1 trillion liras have been allocated for public investments this year. 

Public investments in the transportation and communication sector will increase by 162 percent this year compared with 2023.

Investments in education will increase 147 percent from 2023 to reach 150.8 billion liras, which corresponds to a 15 percent share in the total amount allocated for public investments.

The government allocated 75.7 billion liras for energy investments in 2024, up 70 percent compared with last year. Some 46 billion liras will be spent on the Sakarya Natural Gas Project in the Black Sea.

Türkiye, which has been working to reduce its dependency on foreign energy resources, discovered 710 billion cubic meters of natural gas in the Black Sea. It also aims to boost daily oil production from the Gabar region in the country’s southeast from the current more than 32,000 barrels to 100,000 barrels by the end of this year, which will meet 20 percent of Türkiye’s needs.

The agriculture sector’s share in planned public investments in 2024 is 10 percent. Some 101 billion investments will be made in agriculture this year, marking a 132 percent increase from 2023.

Public investments in housing and mining will amount to 15.6 billion liras and 106 billion liras, respectively.

Saving in public sector

Meanwhile, Treasury and Finance Minister Mehmet Şimşek raised the issue of fiscal discipline and cost-cutting measures at a meeting with governors last week.

“We need to lower the budget deficit, excluding the earthquake-related expenditures, to below 3 percent of GDP,” he said, adding that a deficit above this level is not manageable.

He urged governors to undertake cost-saving measures.

Public expenditures should be efficient, Şimşek also said, urging governors to scrutinize how public investments are being implemented.

“Türkiye currently faces twin deficits. Both the current account and the budget deficits are high,” the minister added.

Some 950 billion liras were allocated last year to heal the wounds from the earthquakes, and this figure will be more than 1 trillion liras in 2024, Şimşek said.