Turkey runs nearly $5B budget deficit for 2017 so far

Turkey's finance minister says hike in budget deficit is due to government incentives to support economic growth

By Bahattin Gonultas and Dilara Zengin

ANKARA (AA) - The Turkish government ran a budget deficit of 17.9 billion Turkish liras (some $5 billion) in January-April and 3 billion Turkish liras (around $843.5 million) in April, Finance Minister Naci Agbal announced on Monday.

“The budget deficit was higher than last year through the first four months due to the government’s incentives that support economic growth,” Agbal said in a statement.

Turkish government revenues in the first four months stood at 197.8 billion liras (approximately $55.6 billion), marking a 9 percent rise year-on-year, while budget expenditures were 215.7 billion liras (around $60.6 billion), an increase of 22.5 percent compared with the same period last year, according to the ministry.

Agbal said the government tax revenue has increased by 14.3 percent in April compared to last year.

“The increase indicates a recovery in production, consumption and economic activity,” Agbal said.

Official data showed that tax revenues rose 12.6 percent during the first four months to reach 158.7 billion liras (some $44.6 billion).

The government's expenditures for health, pensions, and welfare were up by almost 45 percent between January and April to stand at 51.3 billion liras (around $14.4 billion) over the same period last year, while personnel expenditures increased by 8 percent, reaching almost 55.2 billion liras (approximately $15.5 billion).

Interest expenditures stood at 22.5 billion liras (some $6.3 billion) over the same period, corresponding to an increase of 15.1 percent.

In April, budget revenues reached 53 billion liras (around $14.9 billion), a 6.7 percent increase over the same period last year, while budget expenditures surged by 26.3 percent reaching 56 billion liras (some $15.7 billion).

The minister said policies supporting economic activities would continue to affect the 2017 budget.

“On the other hand, the necessary determination will remain for a sustainable budget deficit,” the minister added.

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