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Erdogan Toprak’s criticism of Nureddin Nebati to AKP: ‘Every time he returned empty-handed’

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CHP Istanbul Deputy Toprak published the weekly evaluation report today.

Arguing that the AKP government will have to demand an additional budget this year, Toprak said, “The increase in the budget deficit in April is about 200 percent compared to last year. It seems imperative that the government demand additional borrowing authority and additional budget from the Parliament. The exchange rate difference-interest payment made with the taxes of the people from the budget for the invention of the Currency Protected Deposit (KKM) exceeded 16 billion liras in two months, together with 4.5 billion in April. Half of the 240 billion interest appropriation in the budget was spent in four months. It will be inevitable that the interest to be paid in the remaining eight months will be 500-600 billion TL.”

Noting that “Billions of liras that should be spent for the whole country will be poured into a handful of KKM account holders”, Toprak drew attention to the budget deficit of 19 billion 358 million TL in the January-April period.

“We are entering a period in which the increase in the budget deficit accelerates exponentially, as there is no possibility of a budget surplus in the following months. It is clear that the resulting budget deficit will be one of the important factors that will increase inflation. In April, budget revenues were 164 billion 114 million TL and expenses were 214 billion 281 million TL. Despite the VAT reduction in food items, especially fuel increases that became routine in April, the rapid increase in prices and the hike in all products increased the budget revenues above expectations.


The acceleration in expenditures became more evident in the January-April period. The January-April period expenditure in non-interest expenses reached 45.1 percent of the 1 trillion 750 billion lira appropriation foreseen for the whole year in the 2022 budget and became 785 billion 996 million liras. Therefore, the appropriation remaining in the budget for the expenditures to be made in the remaining eight months is only 54.9 percent of the total annual amount.


The amount of interest expenses, which reached 19 billion 135 million TL in April, is one of the most striking items. Interest payments, which reached 104 billion liras in total in four months in the January-April period, approached half of the 240 billion interest expense amount allocated for the whole year in the 2022 budget. It is necessary to add the Treasury’s KKM payments to the interest expenditures. In this case, the monthly interest expense in April rises to 23 billion 690 million, and the four-month interest payments total to 120 billion 256 million TL.


The Treasury’s average interest rate reached 22-23 percent in weekly borrowing auctions, the possibility of borrowing with double-digit dollar interest due to the increased country risk premium in foreign currency borrowings, and the interest payments of up to 104 billion in four months, despite the government’s insistence and persistence on interest rate cuts, will double the amount in the budget, It indicates that it will climb to 400 billion. In the current transfers item, which showed a significant increase with the payments made to State Economic Enterprises (SEE), Social Security Institution (SGK) and public banks, 14.4 percent of the annual appropriation was spent in a month only in April, and 94.8 billion TL was transferred.


The debts given to TCDD, EÜAŞ due to subsidized electricity sales and BOTAŞ due to re-subsidized natural gas sales accounted for the 579.7 percent increase in the lending item for SEEs, whose assets and resources were rapidly depleting due to rising inflation, in April. In April, TL 1.3 billion was loaned to TCDD, TL 1.9 billion to EÜAŞ and TL 5.7 billion to BOTAŞ.

Since the beginning of the year, the price of debt given only to BOTAŞ from the budget and the Treasury has reached 58.2 billion TL. These numbers show that the budget showed signs of bankruptcy at the end of the fourth month of the year, and that the government will have to enact an additional budget law, in addition to requesting additional borrowing authority from the Parliament for the Treasury.


The April numbers show that with the inflation that will most likely reach three digits in July, the mandatory legal increase in civil servants and pensions, and the reflection of the inflation difference, which is already close to 40 percent, on prices and salaries, the budgetary labor expenditures and SGK transfer appropriations will be exhausted. It seems very difficult for the government to bring the end of the year with this budget.”

Stating that the low-interest housing project announced by President Recep Tayyip Erdoğan did not receive the expected attention, Toprak noted that foreigners are again making the most purchases in the housing market and said, “The Russia-Ukraine war changed the ranking of foreigners who bought housing in our country this time. The Russians took the first place in place of the Iraqi and Iranians. There was an increase of more than 180 percent in the housing purchases of Russian and Ukrainian citizens in Turkey in April.


Toprak shared the following details of housing sales:

“While the Russians, who increased their housing investment in Turkey after the Ukraine-Russia war, ranked first with 1,152 units in April, another record was broken in the number of residences purchased by Russian citizens in Turkey in a month, with an increase of 186.6 percent. In April, Russia was followed by Iranian citizens with 905, Iraqis with 714 and Kazakh citizens with 311, among the constants in the top ranks. Citizens of Germany, Afghanistan, Ukraine and Yemen were also among the top 10 buyers of housing.

House sales to Ukrainians in April, although not numerically, increased by 185.9 percent in a month, from 92 to 263, compared to the previous month.


Another remarkable development is that the housing investments of the citizens of the two warring countries in Turkey exceeded the average rate of 58.1 percent in the housing sales made to foreigners in April. As the war drags on, it can be expected that the Russians and Ukrainians’ preferences for Turkey as a ‘country where they can live together in peace’ will accelerate, and they will direct their savings to the purchase of housing in the first place in order to build a future for themselves in our country.


Saying, “The new economic model of the government (YEM) is falling apart in every field,” Toprak noted that in March 2022, a current account deficit of 5.5 billion dollars was given in a month in the stability of payments, and said, “We have reached the current account deficit price of 18.6 billion dollars for the end of the year. “The current account deficit has exceeded 24 billion dollars on an annual basis. It is getting harder and harder to solve the problem by confiscating the foreign currency of the exporter and the tourism business. This picture shows that the increase in exchange rates and the loss of value in TL will accelerate.”

He explained the effect of the growth of the land current account deficit on the citizens, “This means that the ratio of the current account deficit to national income reaches 5.5-6 percent, the growth declines, and the impoverishment increases even more.” Toprak said, “It should be expected that the government will tighten the foreign exchange regime more, intervene in the free foreign exchange markets and expand the restrictions. Considering that all kinds of guarantees and guarantees are given to foreign central banks in order to be able to make new swap agreements, the helplessness of the government and its ignorance of what to do becomes concrete.

The headlines from Toprak’s report are as follows:


During his 20-year rule, the AK Party General Leader and President Erdoğan, who has exhausted the hopes of millions of young people and prepared the ground for them to worry about the future, says ‘don’t give up on your dreams’ as if it was not he who destroyed the dreams of the young people he gathered at the Palace on 19 May. It seeks to deceive and console our young people, whose future is guaranteed by five contractors, with its 2053 vision bullshit.

The AK future Party percent, which brought up to the point of looking for their future abroad, and President Erdogan, who has ruled the country alone for 20 years, market the 31 years, the 2053 vision to the youth as ‘hope-dream’. Young people all over Turkey are counting the days when they will blow up the ballot boxes with their votes to show that they are no longer deceived, that they are not deceived by the bullshit, to truly establish the bright Turkey of their dreams and to open the door to their hopes.


While the plans for the transfer of public institutions in the Republican period to Istanbul were accelerated, the demolition of Atatürk Airport was brought forward and the dozers were immediately sent to demolition through invitational tender. If more than 2 billion TL of resources are spent on destruction in an economic crisis environment where the country most needs investment, new business areas, budget resources are consumed and money cannot be found for investment, then the other question, no explanation is needed.

Even though the rent-seeking government piles up dozers and planted 1 million saplings, not 132 thousand, it is Atatürk Airport in the hearts and minds of the nation. That garden that you will have to build by paying billions on the back of this nation is the Atatürk Garden. When we come to power, the name of IGA-Istanbul Airport will be Istanbul Atatürk Airport again.


While our export works have become almost free, the terms of trade, which was 91 in March last year, decreased to 75 points this year. While the export unit cost index increased by 9.4 percent in the January-March period, the import unit value index increased by 37.1 percent. This means; Turkey can only import one unit of goods, as it earns from four units of exports.

We have to transfer a higher amount of foreign currency to abroad over the middle goods, raw materials, machinery-equipment we import in order to be able to produce our export goods that have become cheaper with the ‘worthless TL-rising exchange rate’ and to sustain exports, where the bleeding that tends to spread throughout the economy continues to increase. More foreign exchange transfer for less goods paves the way for increased blood loss in the country’s economy, regression in growth, a decrease in national income, and an increase in poverty.


TURKSTAT’s 2021 Income and Lifetime Conditions Research shows that the billion dollars transferred by the government to toll highways, bridges, tunnels and airports do not contribute to the income and welfare increase of 90 percent of the society, and that a very small portion of the country’s income by getting richer with the prestige of 5 percent of the population. showed that the widest sections were impoverished. When the 2022 data is announced, we will see the real dire picture and that the government has regressed the country to the level of African countries.

In addition, from another point of view, the share of 90 percent of the population in the total income is 68.5 percent and the share of the remaining 10 percent is 31.5 percent, that 90 percent of the country’s population has to share two-thirds of the total income. It shows that 10 have one-third of the income.


After the United Arab Emirates (UAE) and Saudi Arabia, the government sent the Minister of Treasury and Finance Nureddin Nabati to Egypt for the first time after 9 years at the ministerial level, and hopes to obtain funds from this country and the Islamic Development Bank . revealed. Minister Nabati, who has been sent to London twice, once to Paris and finally to the IMF in the USA, has returned empty-handed each time. As there was no external source, the existing ones also accelerated to go.

It is difficult to expect all issues to be resolved with the visit of Minister Nabati. Moreover, Minister Nabati has come together with bank-finance managers in London and European investors in Paris since he took office. He held talks with global financial institutions and the IMF through his New York contacts in the USA. None of these contacts resulted in any concrete results, new investment capital inflows, direct investment or loan opportunities. Nothing could be obtained from the contacts with the UK and US central banks to make swap agreements for more than three years.

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