The Turkish Treasury and Finance Ministry has announced today its budget figures for the month of May 2020, for which a budget deficit of TL 17,301 million (USD 2,541 million) was shown, a 43.5% increase on the deficit of TL 12,052 million recorded in the same month of the previous year.
The Ministry announced total government revenue for May as TL 68,145 million (USD 10,007 million), including tax revenues of TL 55,281 million (USD 8,118 million), and budget expenditure as TL 85,446 million (USD 12,547 million), including TL 9,664 million (USD 1,419 million) in interest payments. May 2020 month end USD 1 = TL 6.81 rate was used.
For the first five months of 2020, there was a deficit of TL 90,080 million (USD 14,031 million), an increase of 35.4% on the TL 66,530 million deficit for the same period of the previous year. Total revenue was TL 389,139 million (USD 60,614 million), including tax revenue of TL 280,506 million (USD 43,693 million). Total expenditure was TL 479,219 million (USD 76,645 million), including interest payments of TL 64,960 million (USD 10,118 million). The average USD/TL rate used was USD 1 = TL 6.42.
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 encourage growth, fiscal pressures have been further increased by the adverse economic effects of the restrictions in the movement of Turkey’s population due to coronavirus. The isolation of the population in their homes has resulted in a drastic fall in demand and consumer consumption. Many sectors have had to take drastic action, including laying off their workers. The Turkish government has had to provide financial support for low paid workers who no longer have any income at all and this burden has added to non-interest expenditures.
Sales tax income would also have been adversely affected. It is hoped though that as the lockdown to prevent the spread of coronavirus is relaxed in June, the recent strain on the budget figures will be relieved.
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 90,080 million for the first 5 months of 2020 is already 65% of the budget deficit forecast for the whole year.
Click here for budget report (Turkish)