THE CONSTITUTION OF THE REPUBLIC OF TURKEY

PART FOUR

FINANCIAL AND ECONOMIC PROVISIONS

CHAPTER ONE

FINANCIAL PROVISIONS

I. Budget

A. Preparation and Implementation of the Budget

ARTICLE 161. The expenditure of the state and those of public corporations other than state economic enterprises shall be determined by annual budgets.

The beginning of the fiscal year and the preparation and implementation of the general and subsidiary budgets shall be defined by law.

The law may prescribe special periods and procedures for investments relating to development plans, or for business and services expected to last more than one year.

No provisions other than those pertaining to the budget shall be included in the Budget Act.

B. Debate on the Budget

ARTICLE 162. The Council of Ministers shall submit the draft of general and subsidiary budgets and the report containing the national budgetary estimates to the Turkish Grand National Assembly at least seventy-five days before the beginning of the fiscal year.

The draft budgets and the reports shall be considered by the Budget Committee, which shall be composed of forty members. In the composition of this Committee, the proportional representation of the various political party groups and independent members in the Assembly, shall be taken into consideration subject to the allocation of at least twenty-five seats to members of the party or parties in power.

Draft budget, which shall be adopted by the Budget Committee within fifty-five days shall thereafter be considered by the Assembly and shall be decided on before the beginning of the fiscal year.

Members of the Turkish Grand National Assembly shall express their opinions on ministerial, departmental and subsidiary budgets during the debates held in Plenary Session on each budget as a whole; the various headings and motions for amendments shall be read out and put to the vote without separate debate.

During debates in the plenary session on the draft Budget Act, members of the Turkish Grand National Assembly shall not make proposals which entail an increase in expenditure or a decrease in revenue.

C. Principles Governing Budgetary Amendments

ARTICLE 163. The appropriations granted under the general and subsidiary budgets shall indicate the limit of expenditure allowed. No provisions shall be included in the budget to the effect that the limit of expenditure may be exceeded in pursuance of a decision of the Council of Ministers. The Council of Ministers shall not be empowered to amend the budget by a decree having the force of law. In draft amendments entailing an increase in appropriations under the budget for the current fiscal year and, in draft laws and law proposals providing for additional financial commitments in the budgets for the current or following year, the financial resources which would meet the stated expenditure shall be indicated.

D. Final Account

ARTICLE 164. Draft final accounts shall be submitted to the Turkish Grand National Assembly by the Council of Ministers within seven months of the end of the relevant fiscal year, unless a shorter period is prescribed by law. The Audit Court shall submit its notice of conformity to the Turkish Grand National Assembly within seventy-five days of the submission of the draft final accounts in question.

The draft final accounts shall be placed on the agenda of the Budget Committee together with the Draft Budget Act for the new fiscal year. The Budget Committee shall submit the draft Budget Act to the Plenary Assembly in conjunction with the draft final accounts; the Plenary Assembly shall consider, and decide on the draft final accounts in conjunction with the draft Budget Act for the new fiscal year.

The submission of the draft final accounts and the notice of conformity to the Turkish Grand National Assembly shall not preclude the auditing of accounts for the relevant year which have not already been dealt with by the Audit Court and shall not indicate that a final decision has been taken on these accounts.

E. Auditing of State Economic Enterprises

ARTICLE 165. The principles governing the auditing, by the Turkish Grand National Assembly of the accounts of public establishments and partnerships in which more than half of the capital directly or indirectly belongs to the state, shall be regulated by law.

CHAPTER TWO

ECONOMIC PROVISIONS

I. Planning

ARTICLE 166. The planning of economic, social and cultural development, in particular the speedy, balanced and harmonious development of industry and agriculture throughout the country, and the efficient use of national resources on the basis of detailed analysis and assessment and the establishment of the necessary organisation for this purpose are the duties of the state.

Measures to increase national efficiency and production, to ensure stability in prices and balance in foreign trade transactions, to promote investment and employment, shall be included in the plan; investments, public benefit and requirements shall be taken into account; the efficient use of resources shall be aimed at. Development activities shall be realised according to this plan.

The procedure and principles governing the preparation of development plans, their approval by the Turkish Grand National Assembly, their implementation and their revision, and the prevention of amendments liable to affect the unity of the plan shall be regulated by law.

II. Supervision of Markets and Regulation of Foreign Trade

ARTICLE 167. The state shall take measures to ensure and promote the sound, orderly functioning of the money, credit, capital, goods and services markets; and shall prevent the formation, in practice or by agreement, of monopolies and cartels in the markets.

In order to regulate foreign trade for the benefit of the economy of the country, the Council of Ministers may be empowered by law to introduce or lift additional financial impositions on imports, exports and other foreign transactions in addition to tax and similar impositions.

III. Exploration and Exploitation of Natural Resources

ARTICLE 168. Natural wealth and resources shall be placed under the control of, and put at the disposal of the state. The right to explore and exploit resources belongs to the state. The state may delegate this right to individuals or public corporations for specific periods. Of the natural wealth and resources, those to be explored and exploited by the state in partnership with individuals or public corporations, and those to be directly explored and exploited by individuals or public corporations shall be subject to the explicit permission of the law. The conditions to be observed in such cases by individuals and public corporations, the procedure and principles governing supervision and control by the state, and the sanctions to be applied shall be prescribed by law.

IV. Forests and the Inhabitants of Forest Villages

A. Protection and Development of Forests

ARTICLE 169. The state shall enact the necessary legislation and take the measures necessary for the protection of forests and the extension of their areas. Forest areas destroyed by fire shall be reafforested; other agricultural and stock-breeding activities shall not be allowed in such areas. All forests shall be under the care and supervision of the state.

The ownership of state forests shall not be transferred to others. state forests shall be managed and exploited by the state in accordance with the law. Ownership of these forests cannot be acquired through prescription, nor shall servitude other than that in the public interest be imposed in respect of such forests.

Acts and actions which might damage forests shall not be permitted. No political propaganda which might lead to the destruction of forests shall be made; no amnesties or pardons specifically granted for offences against forests shall be legislated. Offences committed with the intention of burning or destroying forests or reducing forest areas shall not be included within the scope of amnesties or pardons applicable on other occasions.

The limiting of forest boundaries shall be prohibited, except in respect of areas whose preservation as forests is considered technically and scientifically useless, but whose conversion into agricultural land has been found to be definitely advantageous, and in respect of fields, vineyards, orchards, olive groves or similar areas which technically and scientifically ceased to be forest before 31 December 1981 and whose use for agricultural or stock-breeding purposes has been found advantageous, and in respect of built-up areas in the vicinity of cities, towns or villages.

B. Protection of the Inhabitants of Forest Villages

ARTICLE 170. Measures shall be introduced by law to secure co-operation between the state and the inhabitants of villages located in or near forests in the supervision and exploitation of forests for the purpose of ensuring their conservation and improving the living conditions of their inhabitants; the law shall also regulate the development of areas which technically and scientifically ceased to be forests before 31 December 1981, the identification of areas whose preservation as forest is considered technically and scientifically useless, their exclusion from forest boundaries, their improvement by the state for the purpose of settling all or some of the inhabitants of forest villages in them, and their allocation to these villages.

The state shall take measures to facilitate the acquisition, by these inhabitants, of farming equipment and other inputs.

The land owned by villagers resettled outside a forest shall immediately be reafforested as a state forest.

V. Promotion of Cooperatives

ARTICLE 171. (As amended on July 23, 1995)

The state shall take measures in keeping with national and economic interests, to promote the development of cooperatives, which shall be primarily designed to increase production and protect consumers.

VI. Protection of Consumers, Small Traders and Craftsmen

A. Protection of Consumers

ARTICLE 172. The state shall take measures to protect and inform consumers; shall encourage their initiatives to protect themselves.

B. Protection of Small Traders and Craftsmen

ARTICLE 173. The state shall take measures to protect and support small traders and craftsmen.