Turkey’s central government budget posts €869mn deficit in February

By bne IntelliNews March 16, 2015

The central government budget ran a deficit of TRY2.4bn (€869mn) in February versus a TRY1.7bn surplus a year ago as expenditures rise more than revenues in the month.

The central budget also posted a primary surplus of TRY4.53bn in February, representing a 9.3% y/y decline, the ministry of finance said on March 16.

Expenditures increased by 29.8% y/y while revenues showed a 16.6% y/y rise in February, according to data of the ministry. On the expenditure side, interest expenditures jumped 107.1% y/y which the ministry says is temporary and due to the maturity structure of the debt stock. Non-interest expenditures rose by 21% y/y. Commenting on the February budget realisations, finance minister Mehmet Simsek said that the budget deficit seen in February was due to higher seasonal spending on infrastructure and interest. Capital expenditures and capital transfers were up 166% y/y and 205% y/y, respectively, data showed.

On the revenues side, tax collection rose 17.2% y/y with VAT revenues rising only 0.5% y/y, and VAT collection on imports falling 5% y/y, signalling weak domestic demand and economic activity. However, Simsek expects a strong budget performance in the coming months due to a recovery in domestic demand.

The government targets TRY20.96bn of deficit (of 1.1% of GDP) and TRY33bn primary surplus this year.

In the first two months of the year, the budget surplus fell 60.6% y/y to TRY1.41bn while the primary surplus rose 11.7% y/y to TRY13.3bn. Expenditures increased by 14.7% y/y and revenues rose by 11% y/y in January-February.

2015 MONTHLY REALIZATIONS OF CENTRAL GOVERNMENT BUDGET
        (Thousand TL)
  Jan Feb  Total Budget Target
Budget Expenditures 36.341.779 42.510.948 78.852.727 472.942.746
1-Excluding Interest 31.326.769 35.622.371 66.949.140 418.942.746
    Compensation of Employees 12.679.357 9.780.454 22.459.811 119.170.124
    Social Security Contributions 2.168.343 1.676.051 3.844.394 20.324.876
    Good and Service Purchase 1.450.388 2.681.522 4.131.910 41.152.681
    Current Transfers 12.717.930 16.057.020 28.774.950 176.424.780
    Capital Expenditures 1.784.046 2.245.604 4.029.650 40.955.159
    Capital Transfers 181.817 1.191.668 1.373.485 6.797.889
    Lending 344.888 1.990.052 2.334.940 10.544.604
    Reserve Appropriation       3.572.633
2-Interest 5.015.010 6.888.577 11.903.587 54.000.000
Budget Revenues 40.109.175 40.153.409 80.262.584 451.979.400
1-General Budget Revenues 38.851.769 38.269.780 77.121.549 440.997.857
    Taxes 34.876.985 34.612.692 69.489.677 389.501.090
    Property Income 871.063 529.936 1.400.999 9.478.311
    Grants and Aids and Special Revenues 417.940 299.133 717.073 1.932.183
    Interest, Shares and Fines 2.590.612 2.683.163 5.273.775 28.843.105
    Capital Revenues 95.169 133.228 228.397 10.438.998
    Collections from Loans   11.628 11.628 804.170
2-Special Budget İnstitutions 797.763 800.772 1.598.535 7.789.211
3-Regularity & Supervisory Institutions 459.643 1.082.857 1.542.500 3.192.332
Budget Balance 3.767.396 -2.357.539 1.409.857 -20.963.346
Balance Excluding Interest 8.782.406 4.531.038 13.313.444 33.036.654

Related Articles

Shares in Turkey's Halkbank slump 14% after banker's US arrest

Shares in state-owned Halkbank, Turkey’s sixth largest lender by assets, plunged on March 29 on the news that ... more

Turkey ends Syria military campaign day before US secretary of state's visit

The Turkish military has successfully concluded its campaign in northern Syria, PM Binali Yildirim said on March 29, one day before US Secretary of State Rex Tillerson was scheduled to visit Ankara. ... ... more

Turkey's Erdogan renews call for substantial interest rate cut

Turkish President Recep Tayyip Erdogan on March 29 reiterated his discontent with the present level of interest rates, calling on banks to lower their lending costs. “I am against the ... 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