Signs of recovery seen in reduced budget deficit
Posted by meb at November 13th, 2008
Turkey’s budget deficit was 31 percent lower in October than the same month in 2007, the Turkish Finance Ministry announced yesterday in a written statement.
The budget deficit for October was YTL 70.8 million, signaling that the government was somewhat successful in its efforts to maintain a disciplined fiscal system. The statement also said the 10-month primary surplus was 18.7 percent higher than the same period last year, reaching YTL 38.4 billion. According to budget totals for January to October 2008 released by the ministry, Turkey’s total budget deficit was YTL 4.9 billion for this period. From January to October 2008, budget expenditures were up 7.4 percent, while budget revenue increased by 12.7 percent. The budget deficit for the first 10 months of the year was 60.2 percent less than the same period last year. Budget revenue climbed to YTL 175.8 billion in this period. Turkey set its year-end budget revenue target to around YTL 204.5 billion. The 10-month figure indicates that Turkey has achieved 85.9 percent of this target so far.
Figures on budget performance in October 2008 made public by the ministry showed a primary surplus of YTL 1.9 billion. The ministry announced budget expenditures of YTL 15.2 billion against budget revenue of YTL 15.1 billion in October 2008.
In the first six months of the year, interest payments for external and domestic debt declined by 22.9 percent compared to the same period last year, falling to YTL 20.74 billion. Payments to public workers increased by 12.3 percent, amounting to YTL 41.3 billion. Another YTL 5 billion was spent on premium payments to social security institutions for public workers, which represents a 10.6 percent increase over the same period of 2007. Public procurement, which was YTL 15.3 billion in the first 10 months of last year, climbed by 9.9 percent this year, reaching YTL 16.82 billion. Meanwhile, expenditures for public health services increased by 2.8 percent to YTL 5.3 billion in the same period. The transfers from the budget for health services, pensions for retirees and social aid totaled YTL 28.7 billion. As part of this expenditure item, YTL 22.4 billion was spent to cover the deficits recorded by the Social Security Institution (SGK). Also according to the statement, tax revenue for the January through October period was 13.3 percent higher than the same period last year. Income tax revenue was 7.5 percent higher and value-added tax income was 7.6 higher in the first 10 months of 2008 over the same period last year.
The amount of money spent to cover the deficits of the SGK was 22.1 percent less in October 2008 compared to same month last year. YTL 3.1 billion was transferred for the deficits of the SGK in October of last year; however, this amount decreased to YTL 2.4 billion for the same month this year. Payments to public workers increased by 10.8 percent over the same month in 2007, amounting to YTL 4.1 billion in October 2008.
source: Today’s Zaman
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