Budget posts around $500M deficit in February

TURKEY’S central government’s budget balance saw a deficit of TL 1.9 billion ($502 million) in February, Finance Minister Naci Ağbal announced yesterday. The country’s budget revenues surged 30.1 percent to TL 61 billion last month, compared to the same month last year, he said in a statement issued by the ministry’s press office. Budget expenses also rose 17 percent to reach TL 62.9 billion in the same period.

In February, 2017, the central government’s budget deficit was TL 6.8 billion.

Excluding interest payments, the budget recorded a surplus of TL 4.8 billion in February, while interest expenditures were around TL 6.6 billion. The government’s tax revenues reached TL 52.56 billion in the second month of this year, a 31.4 percent annual rise in tax collection.

In the January-February period, the central government’s budget balance also saw a deficit of TL 201 million and the balance saw a surplus of TL 4.6 billion in the same period of 2017.

The country’s budget revenues rose 12.8 percent to TL 119.2 billion, while its expenses rose 18.1 percent to TL 119.4 billion year-on-year in the same period.

Ağbal said: “In the first two months of the year, budget expenses were consonant with budget targets.” The biggest increase in expenses was seen in investment expenditures, he stated, adding: “We will continue to remain committed to achieving the year-end budget target by staying within the medium-term program objectives in the coming months.” Last year, Turkey’s central government budget balance showed a deficit of TL 47.4 billion, which was below expectations - around 1.5 percent of gross domestic product (GDP). Turkey’s budget revenue hit TL 630.3 billion last year, while expenditures were TL 677.7 billion - including interest payments. The government’s annual budget balance saw a noninterest surplus of TL 9.3 billion in 2017, considering the interest expenditures of TL 56.7 billion.