Spending Cuts in Turkey

ANKARA, Turkey — Prime Minister Turgut Ozal ordered cuts in government spending, in an effort to curb Turkey’s soaring inflation, which reached an eight-year high of 81.8% on an annual basis in September.

A circular published in the Official Gazette banned the purchase of new vehicles and redecoration of offices, as well as seeking cuts in entertainment, food, clothing and medical costs. Ozal issued a similar order in April, which bankers said had little effect.

Ozal said Turkey’s high growth rate and the depreciation of its currency--which has fallen 65% against the dollar since the beginning of this year--were making it difficult to control inflation, which has nearly doubled in the past year.