ANKARA - A draft economy law currently before the Turkish parliament is expected to generate more than 200 billion lira ($4.8 billion) in additional budget revenues, reducing expenditure by at least 150 billion lira ($3.6 billion), its impact analysis showed.

Parliament's planning and budget committee on Wednesday began discussing the bill, which envisions increasing revenues without increasing general tax rates by introducing new fees and removing numerous exemptions.

According to the impact analysis, presented alongside the bill, the net effect of the proposal will increase revenues by more than 200 billion lira annually and reduce expenditure by at least 150 billion lira.

The impact of the bill's measures will depend on the extent to which President Tayyip Erdogan exercises his authority in implementing the measures.

Among measures on the revenue side, a 1 percentage point increase in the employer social security premium rate will generate some 111 billion lira in 2026.

On the expenditure side, reducing the disability, old-age, and death insurance employer premium incentive from 4 points to 2 points will save 97.6 billion lira.

The president is also authorised to increase the state contribution rate for the private pension system from 30% by as much as 50 percent or reduce it to zero.

($1 = 41.9551 liras)

(Reporting by Nevzat Devranoglu; Editing by Daren Butler)