The central government budget produced a surplus of TRY 6.4bn (EUR 2.2bn) in November. That is an 18.5% y/y increase in the surplus.

In October, the budget had posted a deficit of TRY 3.2bn.

The central government budget also produced a primary surplus of TRY 8.2bn in November after a TRY 760mn of primary deficit a month ago. The primary surplus fell 7.9% y/y in the month.

Budget expenditures rose 9.1% y/y, data of the finance ministry showed on Monday. Non-interest expenditures increased by 17.4% y/y but interest expenditures fell 49.3% y/y.

Revenues were up 10.7% y/y in November. Tax revenues rose 12.2% y/y. VAT revenues and special consumption tax revenues rose 18% y/y and 16.2% y/y while import tax collection increased 21.2% y/y, all underlining a strong domestic demand. Especially the more than 20% increase in import tax collection should a warning sign for authorities because of the country’s large current account deficit.

In the first eleven months of the year, the central government budget posted a deficit of TRY 1.2bn versus a TRY 13.3bn budget shortfall a year ago. The primary surplus rose by a strong 40.1% y/y to TRY 46.8bn.

The 2014 budget targets a budget deficit of TRY 33.3bn (1.9% of GDP) and a primary surplus of TRY 18.7bn (1.1% of GDP). The government estimates the 2013 budget deficit and primary surplus at TRY 19.4bn (1.2% of GDP) and TRY 31.1bn (2% of GDP), respectively.