Budget runs TL 639 million surplus
Turkey's central government budget accumulated a TL 639 million ($208 million) surplus over the first eight months of 2015, Turkey's Finance Ministry announced Tuesday.
"The number is consistent with our estimated TL 21 billion budget deficit for 2015. As you remember during the January-August period of last year, there was a budget deficit of TL 2.7 billion. The surplus achieved over the first eight months of the year is encouraging," Finance Minister Mehmet Şimşek said in the statement. There was a primary surplus of TL 5.2 billion ($1.72 billion) in August.
"The strong performance was accomplished despite the inconclusive elections in June, growth which stayed below targets set by the Medium-Term Economic Program, geopolitical tensions around Turkey, volatility in global markets and political uncertainty within the country," Şimşek added.
According to the ministry, Turkey's government budget revenue has reached TL 320.4 billion ($105.7 billion) in the first eight months of 2015, a 13.1 percent increase compared with the same period of 2014. Budget expenditures for the same period rose to TL 319.7 billion ($105.5 billion) marking an 11.8 percent increase. Interest expenses reached TL 38.4 billion liras ($12.7 billion) the first eight months of 2015.
"So far budget performance has gone quite well compared with previous year and has met our targets," Şimşek said.
"We must continue to maintain strict budgetary discipline even though the budget showed a strong performance between January and August. The budget discipline is the only anchor for Turkey in the short term as the global economy may suffer in response to the FED raising interest rates and China's economy decline" Şimşek said.
Turkey's government revenue reached TL 42.8 billion ($14.12 billion) in August 2015, a 12.6 percent increase compared with the same period in 2014. Budget expenditures for the same period rose to TL 42.5 billion ($14.02 billion), a 17.2 percent increase.
Turkey's Finance Ministry has estimated budget expenses for the 2015 fiscal year will reach TL 473 billion, while budget income will reach TL 451 billion ($156.04 billion), resulting in a budget deficit of TL 21 billion ($6.93 billion).
The Turkish government's budget ran a deficit of TL 22.7 billion ($7.5 billion) in 2014.
"The number is consistent with our estimated TL 21 billion budget deficit for 2015. As you remember during the January-August period of last year, there was a budget deficit of TL 2.7 billion. The surplus achieved over the first eight months of the year is encouraging," Finance Minister Mehmet Şimşek said in the statement. There was a primary surplus of TL 5.2 billion ($1.72 billion) in August.
"The strong performance was accomplished despite the inconclusive elections in June, growth which stayed below targets set by the Medium-Term Economic Program, geopolitical tensions around Turkey, volatility in global markets and political uncertainty within the country," Şimşek added.
According to the ministry, Turkey's government budget revenue has reached TL 320.4 billion ($105.7 billion) in the first eight months of 2015, a 13.1 percent increase compared with the same period of 2014. Budget expenditures for the same period rose to TL 319.7 billion ($105.5 billion) marking an 11.8 percent increase. Interest expenses reached TL 38.4 billion liras ($12.7 billion) the first eight months of 2015.
"So far budget performance has gone quite well compared with previous year and has met our targets," Şimşek said.
"We must continue to maintain strict budgetary discipline even though the budget showed a strong performance between January and August. The budget discipline is the only anchor for Turkey in the short term as the global economy may suffer in response to the FED raising interest rates and China's economy decline" Şimşek said.
Turkey's government revenue reached TL 42.8 billion ($14.12 billion) in August 2015, a 12.6 percent increase compared with the same period in 2014. Budget expenditures for the same period rose to TL 42.5 billion ($14.02 billion), a 17.2 percent increase.
Turkey's Finance Ministry has estimated budget expenses for the 2015 fiscal year will reach TL 473 billion, while budget income will reach TL 451 billion ($156.04 billion), resulting in a budget deficit of TL 21 billion ($6.93 billion).
The Turkish government's budget ran a deficit of TL 22.7 billion ($7.5 billion) in 2014.