Turkey’s budget deficit rises ahead of snap poll
The budget deficit was almost half of this amount at 11.5 billion liras in the same period of 2017.
In a statement on June 18, Finance Minister Naci Ağbal said there was a significant increase in budget revenues in the mentioned period but the government will reach its year-end budget targets.
“In the second half of the year, we will balance the spending side in a controlled manner and saving additional revenues, while not stopping support for the economy,” Ağbal added.
According to the Medium-Term Program (MTN), the budget deficit/GDP ratio target is 1.9 percent this year, 1.8 percent next year, and 1.6 percent in 2020.
In 2017, Turkey’s budget deficit/GDP ratio was around 1.5 percent — below the targets noted in the country’s MTP.
In the five-month period, Turkey’s budget revenues reached some 302 billion liras ($76 billion), an 18.3 percent annual rise.
This January to May, budget expenditures rose nearly 21 percent compared to the same period last year, totaling 322.5 billion liras ($81 billion).
Interest payments were 31.4 billion liras ($7.9 billion), while tax revenues amounted to 252 billion liras ($63.3 billion) over the same period.
The budget balance excluding interest payments saw a surplus of some 11 billion liras ($2.75 billion) in the January-May period.
The budget saw a 2.7 billion lira ($612.5 million) surplus in May, according to the ministry data.
Last month, Turkey’s budget revenues amounted to 70 billion liras ($15.8 billion), up nearly 22 percent on a yearly basis, according to official data.
Budget expenditures in May were 67.3 billion liras ($15.2 billion), an annual hike of around 32 percent.
Excluding interest payments, the central government budget balance saw a surplus of 8.7 billion liras ($1.97 billion) last month.
The average U.S. dollar/ lira exchange rate in May was 4.42, while one dollar was trading for 3.98 liras on average in the first five months this year, according to the Central Bank.