T.R. MINISTRY OF FINANCE

LOGO T.R.

MINISTRY OF FINANCE T.R.

MINISTRY OF FINANCE

7th OECD-ASIAN SENIOR BUDGET OFFICIALS ANNUAL MEETING

Bangkok, 4-5 February 2010

CRISIS MANAGEMENT IN TURKEY

Contents

Reforms After 2001 Crisis 1

Medium Term Outlook4

Fiscal Stimulus Packages

33

Effects of Global Economic Crisis2

Reforms After 2001 Crisis

Establishing regulatory and supervisory agencies

Reform Areas

Reform Areas

Reforming revenue administration

Abolishing budgetary and extra-budgetary funds

Increasing independency of the Central Bank

Reforming public debt management

Reforming public financial management and control system

Increasing transparency and accountability

Introducing MTEF and performance budgeting

Privatization

Success in Fiscal Consolidation

Fight Against Inflation

Economic and Fiscal Discipline

Fight Against Informal Economy

Fiscal Consolidation

Effects of Global Crisis on Turkish Economy

Increase in unemployment

Recession Recession

Decrease in import

Decrease in inflation

Negative economic expectations

Decrease in production

Negative Effects Positive Effects

Increase in budget deficit

Increase in debt stock

Decrease in export Decrease in interest rates

Decrease in CA deficit

Cost of Stimulus Packages

(Millions of TL) 2008 2009 2010 2008-2010

Revenue Measures 30 4.077 1.748 5.855

Expenditure Measures 7.880 17.217 21.141 46.237

Direct Impact on the Budget 7.910 21.294 22.889 52.092

In Percent of GDP 0.83 2.25 2.22 5.31

Medium Term Targets

* Medium-Term Program

LOGO