The Turkish Grand National Assembly has passed a bill introducing austerity measures in the public sector, effective January 1, 2025.

The new legislation grants the Ministry of Treasury and Finance sweeping powers to audit, monitor, and enforce austerity policies. The Ministry will have full authority to conduct investigations and impose penalties on those who fail to comply with the regulations, outlined in a 31-article framework.

Under the bill, each government ministry will be required to establish its own control mechanisms, with the Presidency being kept informed about the outcomes of disciplinary actions.

The austerity measures include provisions for improving economic efficiency through the sale and liquidation of government vehicles that have exceeded their economic lifespan or are deemed surplus. Additionally, the Special Consumption Tax rates for hybrid electric vehicles will be revised.

The legislation also addresses potential challenges in earthquake-affected regions by stipulating that budget calculations for the 11 provinces impacted by recent natural disasters will be based on 2023 population figures, ensuring continuity of services despite any population decline.

This new bill is part of Türkiye's broader efforts to manage public finances more effectively and support economic stability. (ILKHA)