December 27, 2006	Wednesday	Zilhaj 05, 1427

ANKARA, Dec 26: The Turkish parliament passed its 2007 budget on Tuesday vowing to stick to the austerity measures encouraged by the IMF that have brought about spectacular economic recovery.

After 10 days of vigorous debate over the proposed 204.9 billion lira ($139.7 million) expenditure, the Justice and Development Party's (AKP) budget was passed with 306 votes to 148.

The budget foresees spending 16.9 per cent greater than 2006.

Revenues are forecast at 188.2 billion lira, with a 9.3-per cent increase on the previous 12 months.

The lawmakers also envisage a deficit of 16.7 billion lira, wider than the 2006 target of 14.6 billion lira.

Prime Minister Recep Tayyip Erdogan defended his budget in a final marathon 35-hour parliamentary session promised the plan would be followed to the letter.

Deniz Baykal, head of the opposition social democrats, vehemently objected to the forecasts, saying the foreign trade deficit had reached alarming levels.

“When you arrived in power in 2002, this deficit was $14 billion, now it is $52 billion. It is really serious,” Baykal said.

The session was temporarily suspended after the debate on financial planning dissolved into mudslinging speeches from the rival politicians and rowdy objections from their deputies.

Turkey and the International Monetary Fund (IMF) signed a $10-billion three-year stand-by deal in May last year, succeeding an earlier three-year programme that saved the country from the brink of financial collapse.

Turkey's economy has staged a spectacular recovery over the past three years, with growth at 7.6 per cent and inflation down to 7.7 per cent in 2005.

Ankara hopes the programme will also help prepare the economy for entry into the European Union with which it began membership talks in October last year. —AFP