Budget posts 49 billion liras surplus

ANKARA

The central government budget produced a surplus of 48.6 billion Turkish Liras ($1.8 billion) in July after posting a large deficit of 219.6 billion liras in June, the Treasury and Finance Ministry has said.

Revenues grew 156 percent last month from a year ago to 504.4 billion liras, with tax collection rising nearly 177 percent.

Expenditures amounted to 456 billion liras, pointing to a milder increase of 74.7 percent from July last year.

Non-interest expenditures were up 71.2 percent, but interest expenditures leaped 125.6 percent year-on-year to 37.7 billion.

Revenues from value-added tax (VAT) soared 438 percent after the government hiked the VAT, while the special consumption tax revenues rose by 130 percent year-on-year.

The central budget produced a primary surplus of 86.3 billion, which compares favorably with a primary deficit of 182.3 billion, the ministry reported in June.

In the first seven months of 2023, the budget deficit amounted to 435 billion liras, whereas the central budget posted a surplus of 29.5 billion in the same period of last year.

Revenues rose by 63 percent year-on-year, but the annual increase in expenditures was higher at 96.8 percent.

The primary deficit was 121.7 billion liras in January-July, the ministry said.

Meanwhile, the government has unveiled its proposal for pay raises for civil servants and retired civil servants.

The government offered a 14 percent increase for the first half and another 9 percent for the second half of 2024.

“We also proposed a 6 percent pay raise for the first six months of 2025 and a 5 percent increase for the second half,” said Labor and Social Security Minister Vedat Işıkhan.

The negotiations between the government and unions representing civil servants, which commenced on Aug. 1, will continue until Aug. 22.