Inflation and Budget Assessment from Treasury and Finance Minister Mehmet Şimşek

Treasury and Finance Minister Mehmet Şimşek shared Medium-Term Program targets, growth expectations, and the cost of war on inflation with the public in a joint broadcast.

The Cost of War on Inflation

Treasury and Finance Minister Mehmet Şimşek stated that regional wars drive up oil, natural gas, and commodity prices, emphasizing that had these adversities not occurred, inflation would have been at least 7 points lower.

Medium-Term Program and Budget Targets

Stating that the Medium-Term Program carries the character of a policy commitment, Minister Şimşek expressed that the most binding target in terms of the MTP is the budget dimension and they are moving forward resolutely in this direction.

It was announced that the ratio of the 2026 budget deficit to national income is expected to remain below the 3.5 percent target and materialize at the 3.1 percent level.

Growth Figures and Disinflation Process

While it was noted that the Turkish economy is projected to grow by 3.3 percent in 2026 despite external economic shocks, it was recorded that the disinflation process is not progressing at the targeted pace.

Salary Increases and Farmer Loans

It was stated that the salaries of public employees and retirees will be increased by at least the realized inflation rate, and it was reported that 70 percent of the interest on loans provided to approximately 1 million farmers is covered by the public sector.