Budget posts a deficit of 19.4 billion TRY in June

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Budget posts a deficit of 19.4 billion TRY in June

According to the June budget data announced by the Ministry of Treasury and Finance; Budget balance, which had a deficit of 17.3 billion TRY in May 2020, had a deficit of 19.4 billion TRY in June 2020. The budget had a deficit of 12.1 billion TRY in the same period of the previous year. As stated in the Monthly Budget Realizations Report, the primary deficit, which was 7.7 billion TRY in June 2019, was 13.1 billion TRY in June 2020. Budget revenues increased by 19.5% between June 2019 and June 2020, and reached TRY 66.3 billion, while budget expenditures increased by 26.8% to TRY 85.6 billion in the same period. In the same period, tax revenues increased by 23.5% and reached TRY 55.4 billion with the contribution of excise duties and taxes on imports within the framework of the increase in domestic demand. Non-interest budget expenditures increased by 25.6% to 79.3 billion TRY.

 

When we look at the cumulative data of 2020; It was observed that the budget had a deficit of TRY 109.5 billion in January-June period. It is observed that the budget, which had a deficit of 78.6 billion TRY in the 6-month period of last year, displayed a more negative outlook compared to last year. While primary interest deficit was 27.8 billion TRY in January - June 2019, 38.2 billion TRY primary deficit occurred this year. Budget revenues increased by 13% between January - June 2019 and January - June 2020, reaching TRY 455.4 billion, while budget expenditures increased by 17.3% to TRY 564.9 billion in the same period. In the same period, the increase in tax revenues was realized as 9.2% and reached 335.9 billion TRY. Non-interest budget expenditures were realized as 493.6 billion TRY with an increase of 14.6%.

 

We expect that the support given to the sectors that make up the real economy due to the pandemic conditions and the incentives provided to maintain the employment market dynamics will continue. At this point, the increasing trend on the budget expenditures side will continue. The increase in the expectation of extending employment supports within the framework of the package brought to the Parliament also shows that the priority of the government is to reduce the damage caused by the pandemic. In this context, we expect the effect of the tax revenues provided by the increase in consumption provided by decreasing the interest rates in the short term to remain temporarily. The end of the fight against the pandemic will be an important threshold for normalization in the budget.

Source: Tera Menkul
Hibya News Agency