Turkey's new treasury and finance minister said the budget deficit would come in under 3.5% of gross domestic product (GDP) this year and would be managed with fiscal discipline.
Nureddin Nebati, who replaced predecessor Lütfi Elvan last week, told parliament fiscal policy under his watch would be transparent.
He also repeated that the government would focus on improving the current account balance.
The minister, only days after assuming the position, is set to hold a meeting with representatives of the business world in Istanbul on Saturday.
Executives of the umbrella organizations representing the business world, along with some businesspeople are expected to attend the meeting.
At the meeting where developments in the economy will be evaluated, the finance minister is expected to inform the businesspeople about the Turkey’s new economic model.
At the meeting, the demands of the business world will be evaluated with steps to be taken to increase investment, production and employment.
Nebati’s appointment comes as Turkey is pursuing a new economic model based on lower interest rates, a policy direction President Recep Tayyip Erdoğan says will boost production, jobs, investment, exports and growth.
Erdoğan has repeatedly endorsed an economic model based on lower borrowing costs over the last month, and the government, regulators and banking associations have all embraced the new policy direction.
The move come amid high volatility in exchange rates after the country’s central bank slashed its benchmark policy rate by 400 basis points to 15% from 19% since September. It is widely expected to lower it again this month.
On the other hand, annual inflation accelerated to 21.31% last month, the highest reading since November 2018, up from 19.89% in October, according to official data.
Nebati, who was deputy minister of treasury and finance, meanwhile said last week via his Twitter account that “This time, we are determined to implement it,” referring to the implementing policy of low rates.
He added that there was “no problem” with keeping interest rates low in current market conditions.
