The 2019 budget

Debate over the next budget is over. How will the money be spent?

The parliamentary process for the 2019 Budget, which was presented on October 17 and first debated at the Budget Planning Committee and then by the General Assembly, was completed last week. In an overall projected budget of TRY 880.4 billion, which will be enacted as of Jaunary 1, 2019, tax revenues are expected to be TRY 756.5 billion, the budget deficit TRY 80.6 billion, and a primary surplus of TRY 36.7 billion. Treasury and Finance Minister Berat Albayrak emphasized that the main feature of the 2019 budget was ‘saving budget’, adding that fiscal discipline was the main anchor in his presentations both at the commission and the general assembly. On the other hand, he pointed out that the primary area of savings would be infrastructure investments that have reached a saturation point. The resources allocated to exports, technology production and tourism will not be deducted and resources will primarily be channeled to investments that will increase exports, ensure technological product manufacturing and reduce the current account deficit, he said.

TRY 32.8 b ll on for real sector ncent ves

The biggest share from the 2019 budget - TRY 161 billion was allocated to education. Health expenditures were second with TRY 157 billion. Local governments will receive TRY 93.6 billion and TRY 62.1 billion will be used for social spending. Resources allocated for agricultural will be TRY 26.5 billion while the budget foreseen for real sector supports will be TRY 32.8 billion. In 2019, TRY 4.1 billion will be allocated to the contribution of the state for the private pension system while the total amount of state contribution from the budget in 2019 is expected to reach TRY 19.4 billion.

The scope of the S ngle Treasury Account w ll expand

The scope of the Single Treasury Account, which came into practice as of October 17, 2018, will be enlarged in the coming days. This will enable the Treasury to monitor public cash resources in one single account and approximately TRY 40 billion of public resources is targeted to be managed on this account in the medium and long term. An annual TRY 3-4 billion saving is targeted with the model aimed at increasing efficiency in public debt and cash management and reducing public borrowing costs.

Tax revenues for 2019:

Income tax: TRY 171.9 billion Corporate tax: TRY 74.2 billion Domestic VAT: TRY 70.7 billion Private consumption tax: 162.6 billion VAT on imports: TRY 165.8 billion Stamp duty: TRY 20.8 billion Fees: TRY 27.7 billion Banking and insurance transactions tax: TRY 19.0 billion Motor vehicles tax: TRY 16.0 billion Other taxes: TRY 27.8 billion.