THE REST OF THE YEAR

Dünya Executive - - OVERVIEW -

circle by increasing public spending, to ensure employment and consumptio­n are maintained and production is revitalize­d. But the last graph shows that the budget does not have such staying power because the Erdogan government pursued policies that rapidly increased the budget deficit during the successive election periods. While public expenditur­es increased, significan­t concession­s were made from budget revenues.

Delayed issues have emerged even more violently today. As the budget is exhausted, there is no budget opportunit­y for stopping this course. Moreover, the budget graph that we see here is incomplete because of the Central Bank’s resetting of the dividend payment to the Treasury to an earlier time.

The Central Bank dividend paid in April every year was paid in January this year. This increased budget revenues by TRY 34 billion. Without this operation, the 3-month budget deficit would have increased to TRY 70 billion instead of TRY 36 billion. Considerin­g that the targeted budget deficit is TRY 80.6 billion for the whole of 2019, it’s clear now how disastrous the budget is. The window dressing will disappear once the April budget data is released. We will see the budget deficit spike.

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