The government tightens the "belt" on tax exemptions, public investments are not affected, more than 5% of GDP is expected

The government will follow the policy initiated for fiscal tightening and the removal of exemptions made so far for businesses in various sectors, as one of the main recommendations of the International Monetary Fund. In the 2024-2026 fiscal macroeconomic framework document, it is predicted that the fiscal policy will continue to be oriented towards consolidation in the medium and long term, which is expected to be an inhibiting factor for the economy's progress. However, the document argues that "the fiscal consolidation targeted by the government will limit the overall demand of the public sector. As such, it is not expected to be a growth driver in the medium term. However, fiscal consolidation will reduce the risk premium in the medium term and increase the scope for stimulus in the private sector. these are very important foundations for ensuring a high and stable growth". It is also emphasized that at the same time, the components of the planned budget policies will support growth and therefore the tightening effect of fiscal consolidation is expected to be compensated. On the other hand, the government plans that the government's budget policy to maintain a level of public investment at over 5 percent of GDP in the years 2024-2026 will stimulate the formation of gross fixed capital in the economy, this is essential to support relatively high levels growth in the medium and long term. From the perspective of aggregate supply, the government anticipates that all major sectors will continue to grow more or less at the same trend as their historical average.