Turkey’s central government budget posts €2.4bn deficit in March

By bne IntelliNews April 15, 2015

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
Budget Expenditures  39,761,196  7.3  118,613,923  12.1  448,423,971  472,942,746
1-Excluding Interest  33,573,405  6.8  100,522,545  9.4  398,516,770  418,942,746
    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
    Current Transfers  12,971,923  (8.9)  41,746,873  0.3  162,326,920  176,424,780
    Capital Expenditures  3,232,537  14.9  7,262,187  28.2  48,001,296  40,955,159
    Capital Transfers  420,265  (15.6)  1,793,750  78.5  7,683,073  6,797,889
    Lending  2,251,141  212.9  4,586,081  66.7  10,517,826  10,544,604
    Reserve Appropriation  -       -       -    3,572,633
2-Interest  6,187,791  9.9  18,091,378  29.5  49,907,201  54,000,000
Budget Revenues  32,918,115  3.0  113,180,699  8.5  425,758,290  451,979,400
1-General Budget Revenues  31,567,650  3.0  108,689,199  8.4  409,191,031  440,997,857
    Taxes  26,796,761  17.2  96,286,438  13.2  352,436,834  389,501,090
    Property Income  606,703  1.8  2,007,702  (15.8)  16,118,618  9,478,311
    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
    Capital Revenues  1,758,632  16.1  1,987,029  (33.1)  9,548,325  10,438,998
    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
Budget Balance  (6,843,081)  (34.4)  (5,433,224)  (258.2)  (22,665,681)  (20,963,346)
Primary Balance  (655,290)  (221.7)  12,658,154  1.6  27,241,520  33,036,654
Source: Ministry of Finance            

Related Articles

Europeans everywhere "won’t safely walk the streets", Erdogan says in Ankara speech

Turkish President Recep Tayyip Erdogan continued his war of words with EU governments on March 22, remarking ... more

Turkish Airlines' share price falls further after UK follows US with electronics flight ban

The share price of Turkish Airlines (THY) was down 2.88% by the end of trading on March 21 after the UK joined the US in banning electronic devices larger than smartphones in hand luggage on flights ... more

Turkish Airlines' share price slides after US bans electronic devices on flights

Flag carrier Turkish Airlines (THY) saw its share price fall 1.69% on March 21 after confirming it is among the nine airlines affected by a US cabin baggage ban on large electronic devices on flights ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss