The central government budget produced a surplus of TRY 6.4bn (EUR 2.2bn) in November. That is an 18.5% y/y increase in the surplus.
In October, the budget had posted a deficit of TRY 3.2bn.
The central government budget also produced a primary surplus of TRY 8.2bn in November after a TRY 760mn of primary deficit a month ago. The primary surplus fell 7.9% y/y in the month.
Budget expenditures rose 9.1% y/y, data of the finance ministry showed on Monday. Non-interest expenditures increased by 17.4% y/y but interest expenditures fell 49.3% y/y.
Revenues were up 10.7% y/y in November. Tax revenues rose 12.2% y/y. VAT revenues and special consumption tax revenues rose 18% y/y and 16.2% y/y while import tax collection increased 21.2% y/y, all underlining a strong domestic demand. Especially the more than 20% increase in import tax collection should a warning sign for authorities because of the country’s large current account deficit.
In the first eleven months of the year, the central government budget posted a deficit of TRY 1.2bn versus a TRY 13.3bn budget shortfall a year ago. The primary surplus rose by a strong 40.1% y/y to TRY 46.8bn.
The 2014 budget targets a budget deficit of TRY 33.3bn (1.9% of GDP) and a primary surplus of TRY 18.7bn (1.1% of GDP). The government estimates the 2013 budget deficit and primary surplus at TRY 19.4bn (1.2% of GDP) and TRY 31.1bn (2% of GDP), respectively.
|Import Tax Revenues||5.9||21.2%||56.5||26.6%||50.0||61.2||22.4%|
|Source: ministry of finance|
Turkey's strengthening fiscal and monetary policy mix and reforms should help secure a soft landing for its economy, Deputy Prime Minister Mehmet Simsek said on June 12. Ex-Wall Street banker ... more
A one to two-notch downgrade is implied for Turkey by the spread on its sovereign USD eurobond due 2028, Raiffeisen Bank International (RBI) said on June 12. In a note to investors, RBI analyst ... more
Turkey will strike Kurdish militant camps in the mountains of northern Iraq if Baghdad does not itself clear the area of militants, President Recept Tayyip Erdogan said on June 7. On June 6, ... more