Turkey runs $1.8 billion budget surplus in May thanks to sharp rise in tax revenue: Minister

ANKARA

Turkey ran a budget surplus of 6.4 billion Turkish Liras ($1.8 billion) in May, mainly thanks to a significant boost in tax revenues, Finance Minister Naci Ağbal stated on June 15.       

The surplus was boosted by a 20.3 percent leap in tax revenue, taking tax revenue to 50.9 billion liras ($14.5 billion), Ağbal said in a written statement. 

“In May, tax revenue soared 20.3 percent with corporate taxes, VAT on imports and income taxes seeing significant increases. Revenue from the recent tax restructuring scheme also made a key contribution to the tax revenue hike,” he added. 

The budget also posted a 10 billion lira ($2.87 billion) non-interest surplus in May. 

Total government revenue for the month stood at 57.5 billion liras ($16.4 billion), a 16.1 percent increase year-on-year.      

Budget spending was 51.1 billion liras ($14.6 billion), an increase of 11.4 percent compared to the same period last year, according to the ministry.      

Between January and May, however, Turkey ran a budget deficit of 11.5 billion liras ($3.29 billion), Ağbal noted. The same period last year saw a budget surplus of 9.1 billion liras ($3.1 billion).  
   
“Incentives introduced by the government to support economic growth had a significant impact on the deficit,” he said, adding that the recent economic activity would lead to a rise in tax revenue in the upcoming period. 

“The key for us is to maintain budget discipline. We will continue to realize economic policies by making no concessions in this area,” Ağbal vowed.
 
In the first five months of the year, total revenue rose to 255.3 billion liras ($73.2 billion) with a 10.5 percent increase compared to the same period of 2016. 

Total spending hit 266.8 billion liras ($76.5 billion) in the January-May period, with a 20.2 percent year-on-year increase.