The Turkey budget 2012 is remarkably different from the other major countries in Europe in the way that it is looking to create more jobs in the upcoming fiscal and also increase the expenses.
Highlights of Turkey Budget 2012:
As per the plans of the central government the 2012 Turkey budget will be 12.25 percent more compared to the fiscal allocation for 2011.
The government is estimated to spend 350.9 billion Turkish Liras as opposed to 312.6 billion Liras in 2011 fiscal.
The Finance Minister of Turkey, Mehmet Simsek, has stated that the government will also hire 90,000 more people in various public sector jobs.
The 2012 budget will focus on achieving overall social and economic progress besides improving the balance of public finances.
Simsek has also stated that the resources will be allocated in such a way that the government is able to invest in progressive ventures.
According to the planned 2012 budget 300.6 billion liras will be spent in non-interest expenditures.
The revenues for the 2011 fiscal have been calculated at 279 billion liras but the amount will go up to 329.8 billion liras in 2012 fiscal.
Taxes are supposed to contribute almost 277.7 billion liras in the same period.
It is estimated that in 2012 budgetary surplus will amount to 2.1 billion liras.
In the same period non-interest surplus will be worth 29.2 billion liras.
The finance ministry will receive the biggest share of the money allocated in the 2012 budget 88.5 billion Liras. This amount is more than what was allotted in 2011 budget 72.1 billion Liras.
The Education Ministry is expected to receive 39.2 billion Liras in 2012 and the freshly created Family and Social Policy Ministry will be provided 8.8 billion Liras.
The Public Health Ministry will receive 14.35 billion Liras as opposed to 17.24 billion in 2011 fiscal.
In 2012, 31.55 billion Liras have been set aside for the Labor and Social Security Ministry as opposed to 35.85 billion Liras for 2011 fiscal.
The newly created Sports and Youth Ministry will receive 4.5 billion Liras in 2012 while the European Union Ministry will get 151 million.
Expectations from Turkey Budget 2012:
It is expected that with the 2012 budget the central government will be able to reduce its foreign account deficits and add to the public savings. Experts such as the Istanbul based economist, Ertug Yasar, though have criticized the government s decision to increase 90,000 jobs in the public sector.
Yasar has asked whether so many new employees are actually needed by the economy saying that only if the country was unable to absorb the present workforce should so many jobs be provided.
Yasar feels that if the public sector jobs are being provided on the basis of populism it could actually harm the economy. According to Yasar all around the world, the public sector is characterized by its inefficiency and hence needs to be done away with as soon as possible.