Basic target of our public policy is to reduce the public debt stock to a sustainable level by decreasing the public deficits permanently.
For this purpose incomes policy will be fulfilled regarding to productivity and on a going-forward basis, waste and unproductiveness in expenditures will be prevented and tax incomes will be increased by distributing tax burden to everyone.
Relation among plan-program-budget will be strengthened to provide administrative and financial effect in public finance management of Turkey, financial risks will be taken into consideration at first, system will be more transparent and accountable. A well operating performance information system will be established for the use of performance information during the budget period.
By providing efficiency in public expenditures waste and irregularity will be impeded, and more public service will be given by fewer sources. Thus by easing off pressure on public expenditures public deficits will be minimized. Methods covering the benefit - cost analysis in auditing of public expenditures and measuring the productivity will be put into practice.
With the purpose of providing the distribution and the use of sources efficiently, effectiveness of parliament will be raised by determining powers and responsibilities explicitly in budget preparation period; financial transparency will be maintained by developing financial reporting and accountability.
Public Incomes Policy
It is essential for us that incomes obtained by public should cover the expenditures. In realization of public incomes, social policies such as securing social justice, minimizing regional development difference and increasing employment as well as covering public expenditures from strong sources, encouraging investment, production and trade will be taken into consideration. Justice and efficiency in resource distribution and productivity in service production will be provided.
A Fair and Efficient Tax System
Establishment of a fair tax system where all citizens pay tax in accordance with their financial powers will be a basic principle for us. In the scope of regulations concerning tax, impacts of tax on production and employment and its social role as well as priorities related with public finance will be evaluated.
Tax system will have a dynamic structure which takes economic, social and cultural structure of our country into consideration. Within this framework the program including tax reductions and facilities for those who invest and provide employment, production and export increase.
Unitary taxation will be given a particular importance by taking personality principle of tax and ability to pay principle of taxation into consideration.
Through reductions to be made in tax rates, economic revival will be maintained and tax base will be enlarged. An effective struggle will be implemented against unrecorded economy. By reducing the share of indirect taxes within tax incomes, tax burden on low-incomers will be mitigated and justice of taxation will be ensured.
Simplicity and efficiency in practice will be provided by reviewing all tax laws in terms of tax subject, tax assessment and tax kinds.
A great importance will be given to tax auditing. Problems in organization structure of tax administration will be solved and lack of labor force and technical infrastructure of tax administration will be removed.
In the scope of right to information and transparency principle, it will enable persons and institutions to obtain information and if necessary to question about the expenditure mode and place of their taxes, tax loss and tax evasion will be prevented by strengthening the self-control in tax system.
Public Investment Policy
Basic purpose of public investments is to maximize the contribution to be provided by projects in economic growth and social welfare by means of supplying efficiency in planning and application of investments. It will be a fundamental principle for us to direct the public and private sector investments towards rational and complementary investment fields. Implementation of projects will be encouraged by applying public-private sector cooperation method to benefit from facilities of private sector in great public projects needing advanced technology and full scale source.
In parallel with this policy, within the framework of effective and productive use of public resources to be allocated, investment projects will be given priority related with development of justice, security, education, health, energy, defense, transport, aviation and space, R&D, software and new technologies.
Debt Management Policy
Debt management will be assessed as a separate policy such as monetary and finance policy used to assure stability. In this frame a borrowing policy which complies with monetary and finance policies and is sustainable, transparent and accountable will be implemented.
With the purpose of reducing the cost of borrowing, tender system will have a competitive structure by reaching big investing groups. This needs the existence of secondary markets operating effectively. Accordingly methods allowing to repay bonds prior to due date, to replace them with other bonds and to sell by dividing them will be given particular importance due to high liquidity of loan instruments.
In foreign borrowing, in line with developments in international markets, foreign currency position will be diversified and financial instruments will be used to mitigate the risk and cost and different markets will be included.