Budget deficit in 2023 less-than gov’t forecast

ANKARA

The central government budget produced a deficit of 1.37 trillion Turkish Liras in 2023 that is less than the government had initially projected in the medium-term program.

The government had anticipated a budget deficit of 1.63 trillion liras or 6.4 percent of an estimated GDP in 2023.

In 2022, the budget deficit was 142.7 billion liras.

Revenues increased more than 86 percent last year from 2022 to 5.2 trillion liras with tax collection rising 91.2 percent, the numbers the Finance Ministry unveiled on Jan. 15.

The value-added tax revenues leaped 189 percent to 505 billion liras, while the increase in special consumption tax revenues was 121 percent to 928 billion liras.

Non-tax revenues were up 55 percent.

Total expenditures amounted to 6.6 trillion liras, rising nearly 124 percent from 2022.

Interest expenditures rose 117 percent to 675 billion liras and non-interest expenditures rose 125 percent to 5.9 billion liras.

The budget produced a primary deficit of 700 billion liras last year against a primary surplus of 51.4 billion.

In December alone, the budget posted a deficit of 843 billion liras after producing a surplus of 76.6 billion liras in the previous month.

In the medium-term program the government forecast a budget deficit of 2.5 trillion for 2024, which corresponds to 6 percent of the estimated national income.

The government expects the budget deficit to shrink to 3.4 percent and 2.5 percent of GDP in 2025 and 2026, respectively.