New Party's Medium-Term Program Report: The Price Is Paid Domestically
The New Party Economy Coordination Council shared its evaluation report with the public, containing criticisms and proposals regarding the 2027-2029 Medium-Term Program.
The New Party Economy Coordination Council has released a comprehensive evaluation report on the Medium-Term Program covering the 2027-2029 period. The report emphasizes that economic targets change in a short time, arguing that while excuses are sought abroad, the price is paid domestically.
Changes in Inflation Forecasts
The New Party pointed to the change in inflation forecasts as one of the most significant problems of the economic program. According to the report, the inflation forecast set for 2026 was revised upward by 12.4 percentage points in just one year.
It was pointed out that the Central Bank's year-end inflation forecast for 2027 is 15 percent, while the expectation in the program is 21 percent. It was argued that the 6-point difference between the two institutions demonstrates a coordination problem in economic management.
Employment and Labor Data
The report stated that, according to the program's own tables, the net employment increase projected between 2025 and 2026 is only 13,000 people.
The New Party claimed that the drop in the unemployment rate stems not from the creation of new employment, but from some citizens giving up on seeking jobs.
Budget Allocation and Interest Payments
While it was stated that for every 1 lira allocated by the state to investment, more than 2 liras are paid in interest, it was noted that the ratio of public investments to national income remains at 3.2 percent throughout the program.
In the report, this fiscal picture was criticized with the words that interest is at the top of the budget and investment is at the bottom.
Tax Burden and Income Distribution
It was noted that the ratio of the total tax burden to national income continuously increases during the 2025-2029 period, and approximately 60 percent of tax revenues are provided by indirect taxes.
Although income distribution is mentioned in the program, it was stated that no measurable target has been set, which reduces accountability.
Agriculture and Production Policies
It was conveyed that agriculture is evaluated as an inflation item rather than a strategic sector, and that there is no target regarding agricultural value-added in the three-year program.
The fact that the industrial sector shrank in two of the last eight quarters and the slowdown in the increase of fixed capital investments were among the findings included in the report.