According to the April budget data announced by the Ministry of Treasury and Finance; The budget balance, which gave a surplus of 23.8 billion TRY in March 2021, had a deficit of 16.9 billion TRY in April 2021. The budget had a deficit of TRY 43.2 billion in the same period last year. As stated in the Monthly Budget Realization Report, the primary deficit, which was 26.2 billion TRY in April 2020, was 1.7 billion TRY primary surplus in April 2021. Budget revenues increased by 43.8% between April 2020 and April 2021 to reach TRY 93.8 billion, while budget expenditures increased by 2.1% to TRY 110.7 billion in the same period. In the same period, tax revenues increased by 55.4% and amounted to TRY 76.3 billion. The subsequent period collection effect of debt restructuring from the previous year and the strong economic activity in the period until April were effective in the increase in tax revenues. Non-interest budget expenditures increased by 0.8% and amounted to TRY 92.1 billion. Interest payments expenditures increased by 9% to TRY 18.6 billion in the same period. Borrowing costs remained higher than the previous year due to high inflation.
When we look at the 2021 cumulative data; It was seen that the budget gave a surplus of TRY 5.9 billion in the January – April period. It is observed that the budget, which had a deficit of 72.8 billion TRY in the 4-month period of the previous year, displayed a more favorable outlook compared to the previous year. While 17.5 billion TRY primary deficit was given in January – April 2020, 73.4 billion TRY primary surplus was realized this year. Budget revenues increased by 36.4% to TRY 437.9 billion between January – April 2020 and January – April 2021, while budget expenditures increased by 9.7% to TRY 432 billion in the same period. In the same period, the increase in tax revenues was realized as 47.2% and reached 331.4 billion TRY. Non-interest budget expenditures increased by 7.7% to TRY 364.5 billion.
In March, the profit transfer of the Central Bank to the Treasury and the increase in public revenues were determinant in the budget surplus. The budget surplus given in March due to the one-off revenue effect of profit transfer turned into a budget deficit in April. On the other hand, the budget deficit decreased compared to the deficit of TRY 43.2 billion due to the pandemic-induced economic contraction and tax delays in the similar period of the previous year. The fact that corporate tax will be applied as 25% for 2021 and 23% for 2022 with the new law adopted by the Turkish Grand National Assembly may also have an effect of reducing the budget deficit with the effect of this item. When the budget effect of the last year’s economic supports is analyzed, it is seen that there is a slight increase in budget expenditures this year. On the other hand; tradesmen and SME reflections of the national isolation measures implemented from April 29 to May 17 can provide a series of support, especially in the context of tax and SSI premium configurations. Interest expenditures are still on the rise; Borrowing costs, which have increased especially since the last year, bring an additional increase effect on the interest payments side of the Treasury’s borrowings.
Kaynak Tera Yatırım
Hibya Haber Ajansı
Kaynak: Hibya Haber Ajansı
