YEAR 2011 BUDGET JUSTIFICATION

2011 BUDGET JUSTIFICATION Budget Performance Medium-Term Plan Year 2011 Central Government Budget Draft Revenue,Expenditure, Borrowing Policies and Practices Public Employees, Health and Social Security Systems Public Enterprises and Privatization

Budget Performances

Medium-Term Plan

Central Government Budget Expenditures on the Basis of Economic Classification

Year 2011 Budget Proposal Promote macroeconomic stability together with sustainable development Increase the strength of the economy against external shocks Adopting policies to support monetary and fiscal policy to fight inflation To ensure timeliness and efficiency in spending for social assistance

Budget Estimates GDP to grow by 4.5 percent Year-end CPI will be 5.3 percent Exports to be around 127 billion U.S. $ Imports would be 199.5 billion U.S. dollars

Revenue Policy and Practice The main objective of public and income policies to be applied ; contribute to the growth, support investment and employment and reduction of informality in the economy and to create an effective, simple, and fair taxation system.

Expense Policy and Practice During 2011-2013, by reducing the public sector deficit the resources available to the private sector will be increased and thus contribute to the realization of the private sector-led growth process.

Borrowing Policy and Practices Basic elements of the Borrowing Policy; İncreasing predictability in lending policies and practices , transparency and accountability, the development of the efficiency curve, increasing the liquidity of Public domestic debt securities, expanding the investor base and decreasing the sensitivity of debt stock to risks.

Health System Transfer of SSK hospitals Family Medicine General Health Insurance Promotion of Private Hospitals Drug Policy Full-Time Basis Operating System

Health System in Turkey

Public Economic Enterprises Public Economic Enterprises Policy Enterprise management system project Management policies in accordance with the determination of market conditions Monitoring of a financing policy which is sensitive to international price changes İnactive real estate assessment Join liquidation, privatization, restructuring

Public Economic Enterprises Taking the necessary measures to meet the needs of qualified staff PEE’s giving non-interest surplus during the period The complete withdrawal of public from electricity distribution, telecommunication and sugar production areas

Public Economic Enterprises The Management of PEEs Various measures have been taken to reduce employment expenses The number of employees of PEEs in 1990 was 650,000, this number decreased to 158,000 at the end of June 2010. In recent years, there has been an increase in transfers to PEEs.

Public Personnel System In 2010, public administration, institutions and the relevant personnel and position transactions, 2010-2012 Term Medium Term Program and Medium Term Financial Plan, 2010 Central Government Budget Law, No. 190 Decree Law on General Cadre and Procedure, 78 No. Institutions of Higher Education cadres of the Decree on the staff and the relevant legislations was in line with the principles and objectives.

Privatization