TL 1.5 billion budget deficit seen in Q1

Turkey’s budget deficit in the first quarter of the year stood at TL 1.5 billion, according to a report from the Ministry of Finance published on Tuesday.

The primary surplus for March stood at TL 538 million, bringing the first quarter primary surplus to more than TL 12 billion.

The total budget deficit in March stood at TL 5.1 billion, falling from nearly TL 5.4 billion in March 2013.

Budget spending increased by nearly 23 percent compared to March of last year, totaling TL 37.1 billion. Budget revenues also experienced a significant increase in March, rising 29.1 percent to nearly TL 32 billion.

Income tax revenues went up 7.2 percent last month, accounting for TL 22.1 billion. Approximately 33.9 percent of total tax revenues were from income tax while 22.3 percent came from bank and insurance proceedings taxes, 15.1 percent from corporate taxes, 14 percent from stamp taxes and 8 percent from fees.

Personnel expenses, which stood at just under TL 8.9 billion last month, grew by 18.1 percent when stacked up against last year’s March figures. State payments to social security institutions rose nearly 20 percent in March year-on-year, totaling $1.5 billion, approximately 8 percent of the stipulated budget. Goods and services expenditures rose 24.2 percent, totaling TL 2.8 billion, coming up to 7 percent of the stipulated budget.

Agricultural support payments in the first quarter of the year accounted for TL 3.6 billion. Local authority allowances in the same period rose nearly 13 percent compared to the first quarter of last year, amounting to just under TL 10 billion. Debt payments accounted for TL 2.75 billion, while interest expenses totaled nearly TL 14 billion, a 7.8 percent increase from the same period in 2013.