Economi ile ilgili hikayeler

When tax increases are made to balance the public budget deficit, the ratio of public debt to GDP generally increases. In other words, raising taxes to save money produces the opposite result. This is because the increase in taxes decreases the demand in the market, and since fewer transactions are realized, the tax revenues that the public sector desires to balance the budget cannot be obtained. However, when the public saves, the ratio of public debt to national income decreases.

Consequently, in Turkey, elections take place under all kinds of economic circumstances.

The government's endeavors aimed at economic stabilization, coupled with the central bank's responsibility in steering monetary policy, played critical roles in confronting challenges like inflation, currency stability, and trade disparities. However, the centralization of these plans, or their absence, unfortunately resulted in an inadequate institutional capacity to effectively manage the economy.

Another issue of direct relevance to our daily lives was addressed in this part of the presentation: tax increases. However, despite acknowledging that tax hikes lead to increased inflation, the Central Bank chooses to use the term “tax adjustments.”