Turkish central budget posts €534mn surplus in May

By bne IntelliNews June 15, 2015

The central government budget surplus increased by 11.2% y/y to TRY1.64bn (€534mn) while the primary surplus fell by 35.9% y/y to TRY5.5bn in May, the ministry of finance said on June 15.

Overall budget revenues increased by 11.2% y/y with tax revenues rising by 11.8% y/y in the month, data of the ministry showed. VAT collection was up 14.5% y/y, special consumption tax revenues increased by 20.8% y/y and VAT collection on imports rose by 21.7% y/y in May.

On the expenditure side, the ministry reported that overall spending increased by 11.2% and interest expenditures fell by 45.7% y/y in May.

In the first five months of the year, the central government budget produced a deficit of TRY2.4bn, a 12.4% decline from the same period of 2014. Revenues increased by 12.4% y/y while expenditures rose by 12.1% in January-May, said the ministry.

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

The impact of additional wage hikes for pensioners and civil servants, and a string of micro incentives announced before the elections to support employment and SMEs also remains to be seen, said Deutsche Bank in a post-election commentary on June 12.

Related Articles

Professor says climate change putting Turkey at risk of becoming a “disease-prone desert”

Turkey is at risk of becoming a “disease-prone desert” with water resources and forests disappearing, Hurriyet Daily News reported Professor Mikdat Kadioglu from Istanbul Technical University’s ... more

Turkey’s lira and shares start moving sideways as significance of early elections is debated

The strongly positive initial reaction given by markets to April 18’s surprise announcement of snap elections in ... more

Turkish lira’s chronic weakness credit negative for Turkey’s sovereign rating says Moody’s

The chronic weakness of the Turkish lira (TRY) is credit negative for Turkey’s sovereign debt rating and poses ... more