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.