Turkey - Resilience, Inclusion and Growth DPF

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The objectives of the Resilience, Inclusion and Growth Development Policy Financing Project are to: (i) increase domestic savings and enhance fiscal transparency (Pillar A); (ii) support the economic inclusion of vulnerable groups (Pillar B); and (iii) address structural bottlenecks to sustainable growth (Pillar C). The Resilience Inclusion and Growth- Development Policy Financing (RIG-DPF) supports the authorities in addressing these challenges with prior actions under three pillars. Pillar A aims at increasing domestic savings and enhancing fiscal transparency to address external imbalances and reduce fiscal risks. Amendments to the Private Pension Savings and Investment Law that introduced auto-enrollment will increase private savings and reduce dependence on external financing, while the inclusion of financial statements in the audit reports of general budget institutions is expected to support fiscal discipline by encouraging transparency of fiscal accounts and expanding fiscal risk disclosure in accordance with international practice. Pillar B supports the economic inclusion of vulnerable groups by expanding modalities of flexible employment, increasing access to childcare, enabling ‘Foreigners under Temporary Protection’ to be integrated into the labor market, and prompting active labor market policies. Pillar C aims at removing structural bottlenecks to sustainable growth. This will be achieved through improved legislation for protecting industrial property, allocating capital better by facilitating access to credit for SMEs, deregulating network industries through the liberalization of the railways sector, and supporting renewable energy zones to increase the share of renewable energy in total energy supply.