NEWS Finance        15/10/2020

Turkey records a budget deficit of USD 20.9 billion for the first 9 months of 2020

The Turkish Treasury and Finance Ministry has announced today its budget figures for the month of September 2020, for which a budget deficit of TL 29,665 million (USD 3,828 million) was shown, a 67.5% increase on the deficit of TL 17,712 million recorded in the same month of the previous year.


The Ministry announced total government revenue for September as TL 78,916 million (USD 10,183 million), including tax revenues of TL 68,311 million (USD 10,714 million), and budget expenditure as TL 108,580 million (USD 14,010 million), including TL 16,209 million (USD 2,091 million) in interest payments. September 2020 month end USD 1 = TL 7.75 rate was used.


For the first nine months of 2020, there was a deficit of TL 140,591 million (USD 20,859 million), an increase of 63.8% on the TL 85,818 million deficit for the same period of the previous year. Total revenue was TL 729,422 million (USD 108,223 million), including tax revenue of TL 578,729 million (USD 85,865 million). Total expenditure was TL 870,013 million (USD 129,082 million), including interest payments of TL 107,824 million (USD 15,998 million). The average USD/TL rate used was USD 1 = TL 6.74.


Though a growing budget deficit in Turkey was expected this year as a result of the on-going economic recession and the government propensity to give priority to encouraging growth, fiscal pressures have been further increased by the adverse economic effects of the coronavirus pandemic. With the relaxation of the lockdown as from the beginning of June, consumer demand has recovered somewhat, especially with regards housing and automobiles, but the financial burden placed on households during the lockdown is likely to forestall any resumption of pre-pandemic levels in spending. Indirect tax income is therefore likely to remain depressed.  The surplus in August came as a surprise and was a one-off result which does not reflect the downward trend. The deficit for September shows a resumption of this trend.


The budget deficit for the year of 2019 was TL 123,693 million, a 69.9% increase on the deficit figure of TL 72,813 million for the same period of the previous year. Total revenue for the year of 2019 is TL 875,796 million, including tax revenues of TL 673,315 million, and budget expenditure is TL 999,489 million, including TL 99,940 million in interest payments. Using an average exchange rate of USD = TL 5.65, the deficit for the year of 2019 is USD 21,893 million.


The 2020 budget foresees total expenditures of TL 1,095,461 million, total revenues of TL 956,588 million, and a budget deficit of TL 138,673 million. The budget deficit of TL 140,591 million for the first nine months of 2020 has thereby just surpassed the budget deficit forecast for the whole year.


Click here for budget report (Turkish)



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