Turkish President Recep Tayyip Erdogan said the ruling AKP party will propose a bill easing the debt burden of millions of Turks. The move is aimed at strengthening his electoral base ahead of this year's elections, Bloomberg reported.

The debt-withdrawal proposal could be the president's most expensive election handout yet. The country is struggling with one of the world's biggest inflation crises, with price increases peaking above 85% and then falling to 64% late last year.

Turkey has already raised the minimum wage by 55% this year and promised early retirement to more than 2 million workers. The decision is expected to cost the government about $13 billion. Meanwhile, public employee pensions and salaries have been raised by 30%, and there may be a temporary increase in July. The government also supports affordable housing projects that are expected to cost the Treasury billions of lira.

Although Erdogan remains Turkey's most popular politician, his party has lost support among the poor, who used to be some of its most staunch supporters.

According to Finance and Treasury Minister Noureddin Nebati, Turkey has already provided nearly $16 billion in tax breaks last year.