Türkiye posts highest budget deficit of year in October

Photo: AA

October saw the highest central budget deficit of 2022, with 83.3 billion lira (1 US dollar=18.67 Turkish lira).

The statistics published yesterday (November 15) by the Ministry of Treasury and Finance indicate that in October 2022, budget expenditures increased by 133.9 percent compared to the same month of the previous year and now stand at 307.4 billion lira.

The budget revenues were 224.2 billion lira, with tax revenues accounting for 181,81 billion lira and income non-tax revenues 37.91 billion lira.

This discrepancy between expenditures and revenues means that while the central government budget had a deficit of 17,46 billion lira in October 2021, this increased to 83,254 million lira in October 2022.

The primary budget balance of Türkiye also shows large deficits, indicating that the country spends more on public goods and services than it collects taxes. In comparison, the primary deficit of Türkiye was around 3,10 million lira, in October 2021. This year the deficit rose to an estimated 22,11 million lira.

The budget's main expenses were interest payments which exceeded 300 billion lira. In October 2022, interest expenditures reached a total of 61.1 billion lira. All in all, Türkiye recorded in the first 10 months of the year a budget deficit of 160 billion lira, and a budget deficit of 222.2 billion lira for the last 12 months.

According to the most recent OECD numbers, in 2019, before the COVID crisis, Türkiye had the third-highest fiscal deficit and fourth-highest primary deficit among all OECD members. On the other hand, the country's public debt was the third lowest at 34.8 percent of the GDP. (WM/VK)