Turkey's government cut total budget spending planned for 2009 by 3.06 billion YTL ($2.02 billion), as the country negotiates to secure a loan with the International Monetary Fund (IMF) to weather the global financial crisis.
The move will save 3.06 billion YTL , with additional cuts in municipality spending raising the total to 3.5 billion YTL, Economy Minister Mehmet Simsek said on Thursday in parliament.
The measure, which was approved in parliament, has ordered ministries, including the justice, education and health ministries to cut spending in line with the country efforts to secure a much needed loan with the IMF.
Simsek also told parliament that government investment spending alone would be lowered by 1.8 billion YTL in 2009.
Turkey is negotiating a new loan accord with the IMF, which has called for curbs in spending in return for the loan. An IMF negotiating team is due to arrive in Turkey in early January.
Turkish business leaders and investors have long called for the government to secure a loan accord to stabilize the economy, which has slowed sharply this year, while markets have been battered by the effects of a global crisis.
Turkey's previous $10 billion standby loan accord with the IMF expired in May.