Budget posts 220 billion liras of deficit

ANKARA

The central government budget produced a deficit of 219.6 billion Turkish Liras ($8.36 billion) in June, the Treasury and Finance Ministry has said.

Revenues increased by 48.2 percent last month from a year ago to 268 billion liras, with tax revenues rising 51.4 percent year-on-year to 231 billion liras.

The annual increase in expenditures, however, was higher at 130 percent to 488 billion liras. Non-interest expenditures grew 126 percent to 451 billion, while interest expenditures rose 193 percent annually to 37.4 billion liras.

As a result, the budget deficit widened by 607 percent compared with June 2022. Last month, the central budget’s primary deficit soared by 897 percent year-on-year to 182 billion liras.

In the first half of 2023, the central government budget posted a deficit of 483 billion liras against a surplus of 93.56 billion liras in the same period of 2022.

Revenues increased 48.6 percent, but expenditures rose by 102 percent. Non-interest and interest expenditures were up 101 percent and 104 percent, respectively compared to January-June last year.

Tax revenues rose by 55 percent from a year ago.

The central government budget, which produced a primary surplus of 228 billion liras in the first six months of 2022, ran a primary deficit of 208 billion liras in January-June this year.

Meanwhile, a circular signed by Treasury and Finance Minister Mehmet Şimşek, has asked public institutions to reconsider their spending and implement cost saving measures.

The circular requests public institutions to cut back on expenses related to car purchase and rentals as well as other activities such as ceremonies, hosting guests.

Officials will check whether cost saving measures are properly observed, the circular noted.