The Turkish government expects higher oil revenues to bring this year’s fiscal surplus to 8 quadrillion Liras, the semi-official Anatolia News Agency said Friday.
The government had projected a surplus of 7 quadrillion Liars, and plans to use the extra quadrillion to cover deficits in the state’s energy enterprises and the $1.7 billion short in privatization proceeds, Anatolia News Agency said.
Turkey’s economic establishment has also projected a primary surplus of around 5 percent in the Gross National Product (GNP) next year.
Interest payments on domestic debt originally projected to reach 19.8 quadrillion Liras this year, will be a quadrillion less, 18.8 quadrillion Liras, as a result of the plunge in bond yields.
With less domestic borrowing required, the government projects interest payments to reach 13.7 quadrillion Liars this year.
Turkey plans to incorporate economic policies concerning fiscal discipline and transparency agreed on with the International Monetary Fund (IMF) in its 2001 budget guidelines.
The IMF, the sponsor of Turkey's disinflation program, has called on Turkey to cut spending in 2001 and increase taxes in a way that won’t fuel inflation. –(Albawaba-MEBG)
© 2000 Mena Report (www.menareport.com)
