Turkey proposes 1 trln lira extra budget to tackle rising costs- news agency

Anadolu Efes Biracilik ve Malt Sanayii

20/06/2022 19:53

ISTANBUL, June 20 (Reuters) - Turkey's government has
submitted a proposal to parliament for a supplementary budget of
some 1 trillion lira ($57.74 billion) to cover rising costs of
tackling a currency slide, soaring energy prices and rampant
inflation, the state-run Anadolu news agency said on Monday.
    Sources had told Reuters this month that Ankara was mulling
pushing a supplemetary budget through parliament before summer
recess.  urn:newsml:reuters.com:*:nL8N2XW2EH
    The budget burden has grown due to the rising energy costs,
public sector wage and pension hikes, the lira's slump and the
related rising cost of a deposit protection scheme launched late
in 2021 to mitigate the effects of a currency crisis.
    Anadolu reported the figure, citing a text of the budget
proposal signed by President Tayyip Erdogan.
    "Significant rises in general prices have taken place as a
result of the economic and geopolitical developments around the
world and in our country, thus a need has emerged to also make
increases to budget payments," it quoted Erdogan as saying in
the proposal.
    The proposal will have to be passed first by a commission in
parliament and later by the general assembly. Parliament usually
breaks from early July to early October.
    To help households cope with rising costs, Ankara introduced
in 2021 fuel, electricity and gas subsidies worth 200 billion
lira ($11.6 billion), with 300 billion lira seen this year, but
energy costs have risen much faster than anticipated.

($1 = 17.3185 liras)

 (Reporting by Can Sezer, Nevzat Devranoglu and Ali Kucukgocmen;
Writing by Tuvan Gumrukcu
Editing by Tomasz Janowski)
 ((tuvan.gumrukcu@tr.com; +90 312 292 7021; @tuvangumrukcu;
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tuvan.gumrukcu.thomsonreuters.com@reuters.net))