Turkey to cut primary surplus targets: Finance Minister

Turkey will cut its primary surplus targets under a medium-term economic plan but this should not harm fiscal discipline, Finance Minister Kemal Unakitan said on Thursday.

Turkey to cut primary surplus targets: Finance Minister
Unakitan told Reuters that the plan would be announced at the weekend, but added only that he might also reveal the new primary surplus targets then.

Turkey has set a 2008 target for the primary surplus, which excludes interest payments on government debt, of 5.5 percent of gross domestic product. Previously, the target had been 6.5 percent under deals with the International Monetary Fund.

"The primary surplus is connected to the debt structure. Turkey's debt has fallen ... and it will be lowered further within the framework of a new plan. Reducing the primary surplus should not mean a deterioration in fiscal discipline," Unakitan said.

Turkey's budget deficit, which includes debt repayments, jumped to 4.870 billion lira in March.

Unakitan said he would announce the government's medium-term economic plan together with Economy Minister Mehmet Simsek at the weekend.

He also said the government had no plans to cut special consumption tax on certain white goods categories.

Reuters
Last Mod: 01 Mayıs 2008, 17:13
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