Public sector plans to invest TL 27.8 billion

According to the government’s projections, total investments will reach TL 40.9 billion, including TL 13.2 billion worth of investments by local administrations. In 2009, the program envisaged fueling the economy with TL 21.53 billion worth of investments and this number reached over TL 55.6 billion including investments from local administrations. This year’s numbers indicate that the local administrations have tightened their purse strings while the central government has increased its investment.

Turkey’s growth has depended mostly on private sector investments since 2002, but as companies grew more conservative, maintaining a cautious stance amid the harsh environment of the global economic crisis, the public sector came forth once again and started getting more involved in an attempt to reinvigorate the markets through increased spending and encouraging private sector involvement through incentives.

In 2010, the public sector will mostly focus on the transportation and telecommunications sectors with TL 13.4 billion in investments. Agriculture is second place in investments as the government is planning to allocate TL 4.4 billion to this sector. Education will have the third-largest share of the investment pie with TL 4.3 billion.

In 2010, the energy sector will enjoy a total of TL 3.6 billion in investments. It will be followed by health care, which will receive TL 2.28 billion. According to the 2010 projections, TL 1.42 billion will flow to the mining sector, TL 495 million to the manufacturing industry, TL 222.2 million to tourism and TL 641 million to housing. Other minor sectors will get a total of TL 2.94 billion in investments. The remaining TL 7.26 billion will be transferred to social services.

Of the total public investments, TL 19.27 billion will be financed via the central administration budget and the lion’s share from this will go to the General Directorate of State Hydraulic Works (DSİ), which will receive TL 4.85 billion. The General Directorate of Highways will get TL 2.45 billion, the Education Ministry TL 1.75 billion and the Transportation Ministry’s General Directorate of Construction of Railways, Ports and Airports TL 1.42 billion.