Business circles welcome government’s savings package

ISTANBUL

Business leaders have voiced support for the measures announced by the government aimed at reining in spending and boosting efficiency in the public sector, saying that the package will contribute to the fight against inflation.

The savings package was unveiled by Vice President Cevdet Yılmaz and Finance Minister Mehmet Şimşek on May 13.

Fighting inflation should be the priority and budget discipline should support this struggle, said Rifat Hisarciklıoğlu, the president of the Union of Chambers and Commodity Exchanges of Türkiye (TOBB).

“We welcome the government’s savings and efficiency package. It is a step taken in the right direction,” added Hisarcıklıoğlu.

The principles of efficiency and prudent spending envisaged in the program will not be limited to a certain period but will probably become the part of the country’s “culture,” said Şekip Avdagiç, the president of the Istanbul Chamber of Commerce (İTO).

“We hope that this will contribute to our determination for disinflation,” Avdagiç furthered.

The package is an important step in the fight against inflation, according to Mustafa Gültepe, the head of the Türkiye Exporters’ Assembly (TİM).

He stressed that the program should be implemented in an uncompromised manner.

As part of the package, the government will limit recruitment and transport spending for public servants.

The purchase or lease of any new public service vehicle will be banned for three years, except for mandatory requirements concerning the health, security and defense sectors.

The use of imported vehicles will also cease within the public service.

Other budget cuts are also planned, such as a 10 percent reduction in public budgets for the purchase of goods and services and a 15 percent cut in investments, with the exception of spending in regions affected by the 2023 earthquakes.