Cash budget posts 431 billion Turkish Liras deficit in June

ANKARA

The Treasury’s cash budget ran a deficit of 431 billion Turkish Liras ($13.2 billion) in June after producing a surplus of 235 billion in the previous month.

This year, the cash budget ran a surplus only in May, posting deficits in the other five months, according to data from the Treasury and Finance Ministry.

Cash revenues increased 88 percent year-on-year last month to 554.6 billion liras but dropped from May’s more than 1 trillion liras.

The annual increase in expenditures was 96 percent to 986 billion liras and they exhibited a monthly increase of 25 percent.

Interest expenditures surged 347 percent t in June compared with the same month of last year at 96 billion. They declined 6 percent from 103 billion liras in May.

Non-interest expenditures increased 85 percent year-on-year and 30 percent month-on-month to 889 billion liras.

Consequently, the Treasury’s cash budget produced a primary deficit of 335 billion in June after running a surplus of 337 billion in the previous month. In June last year, the primary deficit was 185 billion liras.

In the first half of 2024, cash revenues amounted to 3.9 trillion liras, whereas expenditures were 4.9 trillion liras.

Interest and non-interest expenditures stood at 530 billion liras and 4.38 trillion liras.

The cash budget produced a primary deficit of more than 1 trillion liras in the first six months of 2024.

Meanwhile, the new tax package, which the government says aims to improve efficiency in tax collection and establish a more equitable tax system, is expected to start to be debated at parliament this week.

In his previous remarks, Finance Minister Mehmet Şimşek said the draft tax package would impose a minimum 15 percent corporate tax on multinational companies.