Public Austerity and Audit Measures: A Turkish Case

Abstract

Following the May 2023 elections, Tu¨rkiye has undergone a major monetary and fiscal shift, characterized by tighter monetary policy, greater emphasis on structural reforms, and increased fiscal discipline. The introduction of new austerity measures in May 2024 has further intensified this process, reinforcing fiscal tightening and stricter auditing alongside tighter monetary policy. This paper examines the latest public sector austerity measures introduced in Tu¨rkiye in 2024 and the corresponding auditing mechanisms. It highlights the continued need for sustained public sector austerity and rigorous financial oversight. The government has officially launched the Public Saving and Efficiency Package, a three–year austerity program aimed at improving public sector efficiency, curbing excess liquidity in the market, and increasing savings. By implementing spending cuts and increasing revenues by several hundred billion liras, the program is expected to generate public savings of more than TL 1 trillion, equivalent to about 3% of Tu¨rkiye’s GDP in 2024. Meanwhile, despite a relatively strong debt position, Tu¨rkiye faces ongoing inflationary pressure and budget deficit challenges. However, improving fiscal indicators and a favorable global economic climate are expected to help the country attract much–needed investment and financial inflows.