Turkey proposes 1 trln lira extra budget to tackle rising costs- news agency

Men and women store at a open current market in Istanbul, Turkey, June 10, 2022. REUTERS/Dilara Senkaya

ISTANBUL, June 20 (Reuters) – Turkey’s authorities has submitted a proposal to parliament for a supplementary finances of some 1 trillion lira ($57.74 billion) to include climbing charges of tackling a forex slide, soaring energy price ranges and rampant inflation, the state-operate Anadolu news agency mentioned on Monday.

Sources had told Reuters this month that Ankara was mulling pushing a supplemetary budget through parliament just before summer season recess.

The price range burden has grown owing to the increasing power costs, general public sector wage and pension hikes, the lira’s slump and the connected soaring charge of a deposit security plan launched late in 2021 to mitigate the outcomes of a currency disaster.

Anadolu claimed the determine, citing a textual content of the spending budget proposal signed by President Tayyip Erdogan.

“Sizeable rises in typical price ranges have taken spot as a consequence of the economic and geopolitical developments all over the planet and in our state, consequently a have to have has emerged to also make boosts to price range payments,” it quoted Erdogan as indicating in the proposal.

The proposal will have to be passed initially by a commission in parliament and later on by the common assembly. Parliament normally breaks from early July to early October.

To assist homes cope with soaring expenses, Ankara introduced in 2021 gas, electric power and fuel subsidies value 200 billion lira ($11.6 billion), with 300 billion lira found this calendar year, but electrical power prices have risen substantially more rapidly than anticipated.

($1 = 17.3185 liras)

Reporting by Can Sezer, Nevzat Devranoglu and Ali Kucukgocmen Composing by Tuvan Gumrukcu
Editing by Tomasz Janowski

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