Turkey’s central budget posts EUR 2.2bn surplus in November.

By bne IntelliNews December 16, 2013

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.

  November Jan-Nov 2012 2013  
 (TRY bn) 2013  y/y 2013  y/y Realization Budget  y/y
Revenues 36.9 10.7% 357.0 17.3% 332.5 370.1 11.3%
 Tax Revenues 33.1 12.2% 299.4 17.1% 278.8 317.9 14.0%
  VAT Revenues 3.0 18.0% 35.6 19.7% 31.6 36.4 15.3%
  SCT Revenues 7.7 16.2% 77.9 20.5% 71.7 83.1 15.9%
  Import Tax Revenues 5.9 21.2% 56.5 26.6% 50.0 61.2 22.4%
Expenditures 30.5 9.1% 358.2 12.7% 361.9 404.0 11.6%
 Interest Expenses 1.8 -49.3% 48.0 2.7% 48.4 53.0 9.5%
Budget Balance 6.4 18.5% -1.2 90.7% -29.4 -34.0 15.4%
Primary Balance 8.2 -7.9% 46.8 40.1% 19.0 19.0 0.2%
Source: ministry of finance            

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