The plan focuses on reducing government spending and boosting efficiency, prioritizing essential state investment projects. This move aims to build confidence in the country's economic tightening program.

These new measures, unveiled by Vice President Cevdet Yilmaz and Finance Minister Mehmet Simsek, mark a shift towards more traditional economic policies. Türkiye hopes to strengthen fiscal discipline and achieve price stability after years of economic turmoil that fueled high inflation.

Annual inflation in Türkiye reached 69.8% in April and is expected to peak around 75-76% in May before dropping to 38% by the end of the year, according to the central bank's latest forecast.

The new plan comes after a significant policy change under Finance Minister Simsek's leadership. Since taking office last year, the central bank has aggressively raised interest rates by 4,150 basis points.

The latest austerity package includes a three-year freeze on new vehicle purchases, rentals, and the construction of new buildings for government institutions.

"Our goal is to solidify our nation's economic foundation by ensuring fiscal discipline," Finance Minister Simsek said at a press conference. "Directing investments towards productive areas will be crucial for this plan's success. We will expedite structural reforms and implement significant changes in public finances."

The plan also outlines cost-saving measures in public sector employment, energy management, waste management, and communications. Specific figures regarding the total amount saved were not disclosed.

"These fiscal policy steps will contribute to disinflation," Simsek added. "We aim to save resources by improving efficiency in the public sector."

The finance minister emphasized that fiscal discipline is essential for achieving long-term price stability. It will also free up resources for earthquake relief efforts following last year's devastating natural disaster and fund green and digital transformation initiatives. (ILKHA)