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
Iran's Araghchi arrives in Turkey for talks on US military build-up as Ankara looks to act as mediator
Iranian Foreign Minister Abbas Araghchi arrived in Istanbul on January 30 for meetings with Turkish officials to discuss regional issues amid what he described as serious challenges posed by US ... more
TPAO and ExxonMobil sign deal for offshore exploration
The Turkish Petroleum Corp. (TPAO) has formalised a strategic partnership with Esso Exploration International, a subsidiary of ExxonMobil, marking a significant escalation in Türkiye’s ambitions ... more
Turkish LPG carrier set on fire during Russian drone attack
A Turkish LPG carrier docked at the port of Izmail, Ukraine, was hit by a Russian drone during an attack, sparking a fire on the vessel, which has now been extinguished. According to the Maritime ... more