The central government budget posted a deficit of TRY 2.7bn (EUR 951mn) in April, as expenditures rose. The budget ran a surplus of 595mn in the same month of 2013 and it produced a deficit of TRY 5.1bn in March 2014.
The primary surplus fell 69.5% y/y to TRY 1.12bn in April, the ministry of finance said. Expenditures rose 23.1% y/y while the rise in revenues was 11.7% y/y. Total tax revenues showed an increase of 7.2% with VAT and special consumption tax collection rising 2% y/y and 7.6% y/y, respectively. Import tax collection rose 16% y/y in April, according to data of the finance ministry. The ministry reported an increase of 24.8% y/y in interest expenditures. Current transfers amounted to TRY 14.4bn, representing a 23% increase from a year ago and personnel expenditures showed a 14.5% y/y increase to TRY 9.25bn.
In the first months of the year, the central government budget produced a deficit of TRY 4.2bn versus a shortfall of TRY 302mn a year earlier. The primary surplus fell 24.3% y/y to TRY 13.57bn in January-April. Budget revenues were up 11% y/y while expenditures rose 14.1% y/y.
Despite the high budget deficit recorded in recent months, the government will achieve its end-year budget targets, finance minister Mehmet Simsek said on Thursday. The government targets a budget deficit of TRY 33.3bn (1.9% of GDP) and a primary surplus of TRY 18.7bn (1.1% of GDP) this year.
|2014 MONTHLY REALIZATIONS OF CENTRAL GOVERNMENT BUDGET|
|Compensation of Employees||11.544.736||8.941.706||8.897.562||9.251.110||38.635.114||109.969.100|
|Social Security Contributions||2.000.454||1.531.904||1.504.180||1.504.007||6.540.545||18.874.583|
|Good and Service Purchase||1.346.304||2.259.364||2.754.956||3.185.102||9.545.726||37.590.028|
|1-General Budget Revenues||36.883.868||32.726.072||30.640.225||32.562.619||132.812.784||392.967.693|
|Grants and Aids and Special Revenues||344.803||87.656||239.628||107.862||779.949||1.556.477|
|Interest, Shares and Fines||1.800.914||1.862.165||4.793.306||2.328.524||10.784.909||26.025.984|
|Collections from Loans||8.247||31.198||631.762||15.588||686.795||142.407|
|2-Special Budget İnstitutions||640.117||842.554||1.162.796||1.339.250||3.984.717||7.222.934|
|3-Regularity & Supervisory Institutions||383.951||855.663||164.651||167.409||1.571.674||2.984.186|
|Balance Excluding Interest||6.922.578||4.993.846||538.252||1.118.182||13.572.858||18.741.912|
|Source: Finance Ministry|
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