Şimşek credits reforms for fiscal transparency gains

WASHINGTON

Treasury and Finance Minister Mehmet Şimşek has credited more than two decades of institutional reform for Türkiye’s gains in fiscal transparency, following an updated International Monetary Fund assessment.

In a social media post on Oct. 24, Şimşek said Türkiye met good or advanced standards on about half the principles in the IMF’s Fiscal Transparency Code in 2015. That share has risen to two-thirds, he said.

The improvement places Türkiye among the leading countries assessed by the fund, according to Şimşek. Around 40 countries have undergone evaluations, including Britain, Finland, Ireland, Austria and Portugal.

“Our work on structural reforms to further improve fiscal transparency continues,” he said.

The IMF’s Fiscal Transparency Evaluation examines government financial reporting, budgeting and the management of fiscal risks. Its latest report credited improvements in fiscal statistics, the introduction of performance-based program budgeting and reforms to implement international public sector accounting standards.

The gains follow a series of changes to public financial management. An IMF review in 2000 found weaknesses in budget preparation and implementation, with reporting largely confined to cash-based budget information. Balance-sheet data were limited, while fiscal risks were insufficiently disclosed.

By the 2015 assessment, the legal framework had strengthened, medium-term budgeting had improved and financial reporting had expanded to cover the general government sector.

In its latest evaluation, the IMF identified fiscal reporting as Türkiye’s strongest area, followed by forecasting and budgeting. It also found scope for further reform in fiscal risk analysis.