It is very important in the fight against inflation and for the attainment of medium-term inflation targets that tight fiscal policy is carried out decisively. It is observed that the primary surplus targets were, to a great extent, achieved, in the last four years. In the first six months of 2006, budget surplus was provided for the first time since 1984 and 78.4 percent of the primary surplus target that was set for 2006 was reached. It is seen that the resolute attitude towards the continuation of fiscal discipline is still maintained today. In this framework, in the scope of the disinflation process, it is very important for the Central Bank that the policies regarding public revenues and pricing are established consistently with the inflation targets and that any need for any unplanned public price adjustments is precluded by respecting the limits of budgetary expenditures. In order for inflation to converge to medium-term targets, it is of critical importance that the structural reform process is maintained in a resolute manner and without any compromise. These reforms would enhance the quality of fiscal discipline, improve competition and the investment environment, which, in the long run, would support an increase in productivity, and would therefore contribute to the disinflation process. 4  BIS Review 89/2006  Now, I would like to underline a point. In our country, expectations may change and go to extremes very rapidly.
The declines in the Central Bank Business Tendency Survey indicators and domestic sales of automobiles as well as the fall in the Consumer Confidence Index also support this anticipation. Thus, it seems likely that the rate of growth will decelerate to a certain extent in the second half of 2006 and the first half of 2007. At this stage, I would like to draw your attention to the following point: What Turkey needs is to sustain growth at levels close to its potential. The uninterrupted course of growth in recent years is just the beginning. This process is a dynamic one. Structural reforms are extremely important and should be reinforced with micro measures, and a strategic vision should be adopted in line with changing needs and new structures. The Ninth Development Plan provides significant ground in this regard and should be put into implementation immediately. I would also like to say a few words about employment, which is another important issue on the agenda of Turkey. The number of people employed is gradually increasing in line with the high growth performance in our country. In the last one-year period, nine hundred seventeen thousand (917,000) new employment opportunities were created in sectors excluding agriculture. Moreover, in accordance with the structural transformation process in the economy, the sectoral distribution of employment is changing and a rapid shift is observed from the agricultural sector to other sectors.