Turkey runs $9B budget deficit in first 10 months

By Dilara Zengin

ANKARA

Turkey ran a budget deficit of 35 billion Turkish liras (some $9 billion) in the first 10 months of this year and 3.3 billion Turkish liras (nearly $848.8 million) in October, according to the Finance Ministry Wednesday.

The government's revenues reached 509.4 billion Turkish liras (nearly $131 billion), marking a 13.8 percent yearly increase, while expenditures stood at 544.4 billion Turkish 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 has made a positive upward trend in parallel with recovery in economy," Finance Minister Naci Agbal said in a written statement.

The government's expenditures for health, pensions, and welfare were up 28 percent during January-October to stand at 114.6 billion Turkish liras (around $29.5 billion) over the same period last year, while personnel expenditures increased by 8.6 percent, reaching almost 136.8 billion Turkish liras (approximately $35.2 billion).

Interest expenditures were 50.1 billion Turkish 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 Turkish liras (some $13.6 billion) while expenditures went up 29.2 percent year-on-year to 56.2 billion Turkish liras (around $14.5 billion), marking deficit of 3.3 billion Turkish liras (nearly $848.8 million).

"Expenditures in October correspond with our year-end forecast," Agbal stated.

The finance minister noted that expenditures without interest payments increased by 29.8 percent in October.

Agbal added that rise in expenditures without interest payments would slow down in November and December.

"Increase in expenditures without interest payments will decrease to 11 percent in the second half of the year pursuant to our prediction in medium-term program as long as any unexpected risk would be happen," he said.

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

Agbal said that developments in labor market increases collection of income tax while rising institutional profits thanks to upward trend in economic recovery boost collection of corporate tax.