Turkey ran $9 billion budget deficit in first 10 months of 2017

ANKARA - Anadolu Agency

Turkey ran a budget deficit of 35 billion Turkish Liras ($9 billion) in the first 10 months of this year and a budget deficit of 3.3 billion liras (around $848.8 million) in October, the Finance Ministry revealed on Nov. 15. 

State revenues reached 509.4 billion liras (around $131 billion), marking a 13.8 percent yearly increase, while expenditures stood at 544.4 billion liras (around $140 billion), rising 18.4 percent year-on-year in January to October, the ministry said in a report.

Tax revenues hit 430.9 billion Turkish liras (some $110.8 billion) in the first 10 months of the year, up 18 percent compared with the same period last year, it said.

“Tax revenues’ performance made a positive upward trend in parallel with the recovery in the economy,” Finance Minister Naci Ağbal said in a written statement.

The government’s expenditures for health, pensions and welfare were up 28 percent in the January-October period from the same period last year, standing at 114.6 billion liras (around $29.5 billion). Personnel expenditures increased by 8.6 percent, reaching almost 136.8 billion liras (approximately $35.2 billion).

Interest expenditures were 50.1 billion liras (some $12.9 billion) over the same period, marking an increase of 12.4 percent.

In October, the government’s revenues rose by 21.8 percent yearly to 52.8 billion liras (around $13.6 billion) while expenditures went up 29.2 percent year-on-year to 56.2 billion liras (around $14.5 billion), marking a deficit of 3.3 billion liras (around $848.8 million).

“Expenditures in October correspond with our year-end forecast,” Ağbal stated.

He noted that expenditures without interest payments increased by 29.8 percent in October but pledged that rise in expenditures without interest payments would slow down in November and December.

“The increase in expenditures without interest payments will decrease to 11 percent in the second half of the year, pursuant to our prediction in the medium-term program as long as no unexpected risks happen,” Ağbal said.

Tax revenues in October also hit 45.6 billion liras (around $11.7 billion), increasing by 26.3 percent yearly.

Ağbal said developments in the labor market and increases in collection of income tax, as well as rising institutional profits thanks to the economic recovery all boost collection of corporate tax.