Turkish budget deficit surges, unemployment falls

The Turkish budget deficit widened 78 percent in the first five months of the year to 20.5 billion lira ($4.35 billion), official data showed on Monday, reflecting an upswing in government spending ahead of elections.

Despite the substantial increase — the deficit was at 11.5 billion lira in the same period a year earlier — the government stuck to its year-end budget target, suggesting a tighter rein over spending after the June elections.

Turks go to the polls on June 24 for snap presidential and parliamentary elections, in which President Tayyip Erdogan and his ruling AK Party seek re-election.

“Spending will be balanced in a controlled manner in the second half of the year while additional revenues will be saved to support economy policies,” Finance Minister Naci Agbal said in a statement.

In the month of May, the budget showed a surplus of 2.7 billion lira, down from 6.4 billion lira a year earlier, the data showed.

The primary surplus, which excludes interest payments, amounted to 8.7 billion lira in May.

Budget revenues rose 18.3 percent to 302.1 billion lira and expenditure rose 20.9 percent to 322.5 billion lira in the first five months of the year, Agbal said.

“Spending will be balanced under control in the second half of the year while additional revenues will be saved to support economy policies,” Agbal said in a statement. (RTRS)