The central government budget ran a deficit of TRY6.8bn (€2.4bn) in March, 34% y/y up from TRY5.1bn of deficit a year ago as expenditures rise more than revenues in the month.
The central budget also posted a primary deficit of TRY655mn in March versus a TRY538mn primary surplus in March 2014, the ministry of finance said on April 15.
Expenditures increased by 7.3% y/y while revenues showed a 3% y/y rise in March, according to data of the ministry. On the expenditure side, interest expenditures rose 9.9% y/y while non-interest expenditures rose by 6.8% y/y. Commenting on the March budget realizations, finance minister Mehmet Simsek said that he expects a strong budget performance in the coming months due to a recovery in domestic demand.
On the revenues side, tax collection rose 17.2% y/y with VAT revenues declining 2.7% y/y, and VAT collection on imports rising 14.3% y/y and SCT revenues rising 30.2% y/y.
The government targets TRY20.96bn of deficit (of 1.1% of GDP) and TRY33bn primary surplus this year.
In Q1, the budget deficit jumped by 258% y/y to TRY5.4bn while the primary surplus rose 1.6% y/y to TRY12.7bn. Expenditures increased by 12.1% y/y and revenues rose by 8.5% y/y in January-March.
|CENTRAL GOVERNMENT BUDGET REALIZATIONS|
|Thousand TRY||Mar-15||y/y, %||Q1-15||y/y, %||2014 Realization||2015 Budget|
|Compensation of Employees||9,881,832||11.1||32,341,643||10.1||110,370,074||119,170,124|
|Social Security Contributions||1,610,182||7.0||5,454,576||8.3||18,926,444||20,324,876|
|Good and Service Purchase||3,205,525||16.4||7,337,435||15.4||40,691,137||41,152,681|
|1-General Budget Revenues||31,567,650||3.0||108,689,199||8.4||409,191,031||440,997,857|
|Grants and Aids and Special Revenues||171,451||(28.5)||888,524||32.2||1,891,117||1,932,183|
|Interest, Shares and Fines||2,115,607||(55.9)||7,389,382||(12.6)||28,293,680||28,843,105|
|Collections from Loans||118,496||(81.2)||130,124||(80.6)||902,457||804,170|
|2-Special Budget İnstitutions||1,157,026||(0.5)||2,755,561||4.2||13,419,496||7,789,211|
|3-Regularity & Supervisory Institutions||193,439||17.5||1,735,939||23.6||3,147,763||3,192,332|
|Source: Ministry of Finance|
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