NEWS Finance        16/07/2020

Turkey records a budget deficit of USD 16.9 billion for the first half of 2020

The Turkish Treasury and Finance Ministry has announced today its budget figures for the month of June 2020, for which a budget deficit of TL 19,370 million (USD 2,828 million) was shown, a 60.7% increase on the deficit of TL 12,053 million recorded in the same month of the previous year.

 

The Ministry announced total government revenue for June as TL 66,272 million (USD 9,675 million), including tax revenues of TL 55,443 million (USD 8,094 million), and budget expenditure as TL 85,643 million (USD 12,503 million), including TL 6,297 million (USD 919 million) in interest payments. June 2020 month end USD 1 = TL 6.85 rate was used.

 

For the first half of 2020, there was a deficit of TL 109,450 million (USD 16,890 million), an increase of 39.3% on the TL 78,583 million deficit for the same period of the previous year. Total revenue was TL 455,411 million (USD 70,279 million), including tax revenue of TL 335,948 million (USD 51,844 million). Total expenditure was TL 564,862 million (USD 87,170 million), including interest payments of TL 71,257 million (USD 10,996 million). The average USD/TL rate used was USD 1 = TL 6.48.

 

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 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 over the March-May period especially. With the relaxation of the lockdown as from the beginning of June, consumer demand will have recovered somewhat, but the financial burden placed on households during the lockdown is likely to forestall any resumption of pre-pandemic levels in spending.  

 

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 109,450 million for the first half of 2020 is already 78.9% of the budget deficit forecast for the whole year.

Click here for budget report (Turkish)

 



Turkey’s net minimum wage has been raised 15.04% to TL 2,324.70 (USD 391) as of 01.01.2020       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s annual inflation rate falls back to 11.76% in July 2020       Turkey’s official unemployment rate increases marginally to 12.9% in May 2020       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,154,997 as of 2019 yearend       Foreigners visiting Turkey in 2019 increase by 14.1% to a record 45.1 million       Turkey’s private sector foreign debt is USD 189.8 billion as of 2019 yearend       Turkey’s economy grew by 0.9% in 2019