Berova: Balanced Budget Targeted by 2027

Berova noted that the 2024 budget was prepared with a focus on mitigating the economic downturn in the TRNC. He highlighted revenue-enhancing and cost-reducing measures as key steps toward financial stability. These efforts, he said, would gradually reduce the budget deficit in 2025 and 2026, culminating in a balanced budget by 2027.

The minister outlined the primary objectives of the 2025 budget, including improving fiscal transparency, enhancing efficiency in resource allocation, and supporting public and private investments. He stressed the importance of sustaining economic stability, fostering sustainable growth, and prioritizing sectors like education, healthcare, infrastructure, and agriculture. Berova also emphasized the need to address challenges related to climate change, drought, and food security.

Acknowledging criticism over the use of earthquake tax revenues, Berova defended the government’s transparency and efficiency in utilizing these funds. He also pointed out the significance of aligning fiscal policies with strategic goals to ensure effective use of resources.

Tourism, a key sector for the TRNC economy, showed signs of recovery in 2024, with increased tourist accommodation compared to the previous year. Berova announced plans to strengthen tourism revenues by addressing informal activities through enhanced automation and updated regulations.

Regarding inflation, Berova noted the transition from inflationary pressures to a disinflationary period in Turkey and highlighted the positive ripple effects on the TRNC economy. He stressed the importance of structural reforms to boost investment, employment, production, and exports while ensuring fair wealth distribution across society.

Berova described the state budget as a roadmap for the efficient management of public finances, balancing limited resources with high demands. He reiterated the government’s commitment to transparency and accountability, pledging to respond to all queries during the budget discussions.

In conclusion, Berova expressed optimism about the 2025 budget's role in addressing urgent challenges and laying a solid foundation for long-term fiscal stability and economic development.