Turkey's industry and trade minister has reiterated government's resolve over implementing a fiscal rule, initially set for 2011 but postponed until 2012.

"We have not given up on our commitment on the fiscal rule. The implementation will have to wait until 2012," Nihat Ergun told reporters in press meeting on Wednesday.
The rule, that would replace the IMF funds as an anchor, was set to take effect in 2011.

The rule aims at cutting the budget deficit to 1 percent of GDP in 10 years and the debt-to-GDP ratio to some 30 percent in 5-10 years. In 2009, the deficit stood at 5.5 percent of GDP and debt at 45.5 percent.

The government had earlier said that it was determined anyway to maintain fiscal discipline.

"2011 budget will not be implemented according to the fiscal rule, but 2012 budget will be," Ergun said.

The Turkish industry minister said concerns had been voiced by different state bodies on the flexibility of the formulation of the fiscal rule, which he said needed "more discussion and consideration."
 

AA