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Friday October 11, 2013 MYT 5:00:01 PM
Friday October 11, 2013 MYT 5:01:12 PM
Turkey's Finance Minister Mehmet Simsek speaks during the 4th Istanbul Finance Summit in Istanbul September 19, 2013. REUTERS/Murad Sezer
ANKARA (Reuters) - Turkey's spending plans for next year do not constitute an "election budget" and the government will maintain its discipline on public finances as a voting cycle gets underway, Finance Minister Mehmet Simsek said on Friday.
The International Monetary Fund called on Turkey to tighten its monetary and fiscal policies last week in order to reduce its external imbalances, which have been exacerbated by capital outflows from emerging markets.
Turkey is due to hold local and presidential elections next year and a parliamentary vote in 2015. Some economists fear the government, which has built its reputation on a decade of strong growth, may be tempted to pump prime the economy.
Detailing the government's spending plans, Simsek said the budget deficit would stand at around 19 billion lira ($9.6 billion), or 1.2 percent of GDP, by the end of this year.
In its medium-term programme announced this week, the government forecast the deficit would widen to 33.2 billion lira next year before narrowing to 29.5 billion in 2015 and 23 billion in 2016.
(Reporting by Orhan Coskun; Writing by Nick Tattersall)
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