Turkish parliament to vote on budget for 2020-2021 fiscal year
The Turkish Parliament is set to vote on a budget for the 2021 fiscal year today.
The budget prioritises combatting the impact of the global pandemic on Turkey through reducing inflation, raising employment opportunities and investment in hopes of reaching a 5.8% economic growth rate. In 2020, the government, by trying to relieve the financial burden on the country, created a budget deficit of $19 billion.
Although the government is projected to rake in 13% more revenue this upcoming year, newly imposed sanctions from the United States will likely impede Turkish economic recovery. The US cut off the Turkish defence agency from American financial support and technology as retaliation for Ankara’s purchase of Russian S-400 missile system. Expect Turkey to continue pivoting away from NATO and towards Russia as the EU also looks to antagonize Turkey. Turkish desire to bolster its position of power in the Middle East could lead to more deals with Russia as the Kremlin readily indulges Ankara in arms deals Washington rejects. However, because the sanctions only target the nation’s defense agency, the Turkish economy writ large is less likely to suffer and has a chance of making a strong comeback in the medium-term.
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