Turkey’s cash budget ran a surplus of TRY12.9bn (€3.97bn) in May, marking a 280% y/y rise, Treasury data showed on June 7.

The primary cash surplus grew by 204% y/y to TRY25.9bn in the month.

Across January-May, the cash deficit contracted by 44% y/y to TRY11.55bn while the cash budget produced a surplus of TRY16.4bn versus a primary deficit of TRY4.04bn a year ago.

In 2017, the cash deficit rose by 58% y/y to TRY60.5bn while the primary deficit rose by 239% y/y to TRY18bn.

The finance ministry will release the April budget figures on May 15.

On May 1, the Turkish government announced election incentives for 12mn retirees that will cost TRY22-24bn by year-end.

Across January-April, Turkey’s central government budget deficit expanded by 30% y/y to TRY23.2bn.

The central government budget posted a deficit of TRY47.4bn in 2017. Turkey’s budget deficit widened 25% to TRY29.3bn in 2016. 

The 2017 deficit was less than the TRY61.7bn deficit foreseen for the year in the government’s revised medium-term programme.

The government is targeting a budget deficit of TRY65.9bn, or 1.9% of GDP, in 2018.

The budget was stretched by a set of economic stimulus measures brought in during the build-up to the April 2017 referendum, which officially resulted in a Yes vote for an executive presidency. 

New tax measures announced in September will add TRY 27-28bn to budget revenue in 2018, according to Finance Minister Naci Agbal.

Turkey plans to earmark up to TRY18bn for additional defence spending in 2018 with the extra costs to be met mainly from tax income rather than borrowing, Deputy PM Mehmet Simsek said in October.