Turkish budget deficit expands in election month
Turkey’s central government budget balance recorded a deficit of 25.6 billion Turkish Liras ($5.3 billion on July 16 parity) in June with a dramatic year-on-year increase due to rising public expenditure ahead of the elections, official data has shown.
The gap was 13.7 billion liras in the same month of 2017.
Analysts said a number of pre-election expenditures played a significant role in pushing up the budget gap in June, including the bonus payments to retired people.
Still, revenues showed a healthy increase thanks to hefty growth in tax income, enabling the deficit not to exceed the budget target dramatically, data from the Treasury and Finance Ministry showed on July 16.
The deficit was 46 billion liras ($9.5 billion) in the first half of this year with a 70 percent yearly increase, according to the ministry data.
This January to June, Turkey’s budget revenues totaled 353.6 billion liras, up around 18 percent year-on-year, according to official data.
Official figures showed that tax revenues amounted to 294.8 billion liras while interest payments were 33.8 billion liras over the same period.