The Turkish Treasury and Finance Ministry has announced today its budget figures for the month of July 2020, for which a budget deficit of TL 29,696 million (USD 4,279 million) was shown, a 399.9% negative decrease on the surplus of TL 9,901 million recorded in the same month of the previous year.
The Ministry announced total government revenue for July as TL 86,529 million (USD 12,468 million), including tax revenues of TL 76,014 million (USD 10,953 million), and budget expenditure as TL 116,225 million (USD 16,747 million), including TL 8,456 million (USD 1,218 million) in interest payments. July 2020 month end USD 1 = TL 6.94 rate was used.
For the first seven months of 2020, there was a deficit of TL 138,873 million (USD 21,234 million), an increase of 102.2% on the TL 68,682 million deficit for the same period of the previous year. Total revenue was TL 541,940 million (USD 82,865 million), including tax revenue of TL 411,962 million (USD 62,991 million). Total expenditure was TL 681,087 million (USD 104,142 million), including interest payments of TL 79,713 million (USD 12,189 million). The average USD/TL rate used was USD 1 = TL 6.54.
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 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 138,873 million for the first seven months of 2020 has now surpassed the budget deficit forecast for the whole year.
Click here for budget report (Turkish)