The central government budget ran a surplus of TRY3.8bn (€1.34bn) in January as expenditures rose 0.9% y/y but revenues showed a 5.8% y/y rise, the ministry of finance said on February 16. The budget produced a primary surplus of TRY8.78bn versus TRY 6.92bn a year ago. Commenting on the budget performance, finance minister Mehmet Simsek said that the January data was in line with 2015 targets and the government would maintain its cautious fiscal stance this year. The government targets TRY20.96bn of deficit (of 1.1% of GDP) and TRY33bn primary surplus this year. Recent volatility in the markets affected economic activity but its impact on January budget revenues was limited, Simsek added.
According to data, interest expenditures fell 0.02% y/y while non-interest expenditures rose 1.1% y/y in January. On the revenues side; tax collection rose 6.6% y/y with VAT revenues and special consumption tax revenues rising 19.2% y/y and 16.7% y/y, respectively. VAT collection on imports fell 13.8% y/y.
| January | 2014 | 2015 | y/y | ||
| (TRY bn) | 2015 | y/y | Realization | Budget | (%) |
| Revenues | 40.1 | 5.8% | 425.8 | 452.0 | 6% |
| Tax Revenues | 34.9 | 6.6% | 352.4 | 389.5 | 11% |
| VAT Revenues | 6.1 | 19.2% | 38.1 | 44.2 | 16% |
| SCT Revenues | 8.4 | 16.7% | 91.1 | 94.0 | 3% |
| Import Tax Revenues | 4.3 | -13.8% | 64.4 | 75.1 | 17% |
| Expenditures | 36.3 | 0.9% | 448.4 | 472.9 | 5% |
| Interest Expenses | 5.0 | 0.0% | 49.9 | 54.0 | 8% |
| Budget Balance | 3.8 | 97.6% | -22.7 | -21.0 | -8% |
| Primary Balance | 8.8 | 26.9% | 27.2 | 33.0 | 21% |
| Source: ministry of finance | |||||
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