30.01.2025 17:11
The Minister of Treasury and Finance, Mehmet Şimşek, said, "Our goal is to reduce inflation to 21 percent. We will lower inflation through supply-side policies."
Minister of Treasury and Finance Mehmet Şimşek made critical statements at the 7th Ordinary Congress of the AK Party Ankara Women's Branch. Minister Şimşek announced the inflation target and gave good news about the social housing project.
"OUR TARGET IS TO REDUCE INFLATION TO 21%"
In his statement regarding inflation, Minister Şimşek said, "Our target is to reduce inflation to 21%. We will lower inflation through supply-side policies."
Minister Şimşek noted the following in his statements: We have reduced the difference with the OECD to 17. We did not let our employees be crushed by inflation. There is a preparation for a social housing campaign by our Ministry of Environment and Urbanization for low-income groups. We cannot become rich through consumption; we need to become rich by producing and exporting. We will further reduce the credit costs for our exporters in the upcoming period. Our goal is to reduce inflation to 21%. We are implementing a program to solve the cost of living.
THE TREASURY COVERS 60 LIRA OF A 100 LIRA ELECTRICITY BILL
"The most important thing is for us to activate renewable energy. By the end of 2024, the Treasury will cover 60 Lira of the 100 Lira electricity bill consumed by our households. If it costs us 100 Lira, we are billing you 40 Lira. The state covers 63 Lira of every 100 Lira natural gas bill used by households. If the cost of the natural gas we import from Russia is 100 Lira, we are billing it to households at 37 Lira. There is tremendous support and subsidy in energy. As of February, we will largely remove the subsidy that mainly affects the wealthy. Subsidies will continue in a broad sense. We provide energy support to families in need. Since 2019, we have provided energy support worth 61.5 billion Lira to 4.1 million households.
MINIMUM WAGE INCREASED BY 293%
The net minimum wage was 184 Lira before the AK Party governments, and it has now risen above 22,000 Lira. When adjusted for inflation, it has increased by 293%, and there has never been such a period. We will not let employees be crushed by inflation from now on. The lowest civil servant salary has nearly reached 44,000 Lira. We have increased it from 238 dollars to over 1,220 dollars. It has increased fivefold in dollar terms. The lowest pension was 66 Lira. Today, it has nearly reached 14,500 Lira. In dollar terms, it has increased from 40 dollars to over 400 dollars. There is a tenfold increase during this period.
"WOMEN'S COOPERATIVES ARE EXEMPT FROM CORPORATE TAX"
We have taken many steps to increase women's employment. We have extended maternity and breastfeeding leave to 16 weeks. We have introduced social security premium support for women's employment between 24 and 54 months. We have provided premium support for young women entrepreneurs. We will take steps in the upcoming period. We currently exempt products manufactured at home from taxes. Women's cooperatives are exempt from corporate tax. We provide income exemption for businesses that provide daycare and nursery services. We will take many steps in the upcoming period.
50% OF TRADESMEN'S LOANS COME FROM THE TREASURY
Our Treasury covers 50% of the loans used by tradesmen. This year, we allocated resources from a budget of 60 billion Lira. We have extraordinarily increased credit opportunities for our exporters. Last year, we provided credit opportunities at 580 billion Lira, well below the market interest rate. We have reduced the credit cost to 28% as of last week. That is, well below the market interest rate.