The Turkish budget deficit surged to a record TL 2.11 trillion ($59 billion) in 2024, driven by high inflation and increases in spending due to election-related expenditures and the aftermath of a devastating earthquake, official data showed Wednesday.
In December alone, the budget gap amounted to TL 829.2 billion, with a primary deficit, which excludes interest payments, totaling TL 754 billion, the Treasury and Finance Ministry said. For the full year, the primary deficit stood at TL 835.7 billion.
The deficit rose about 50% from TL 1.4 trillion in 2023.
The data showed budget revenues last year increased by 66.5% to TL 8.67 trillion, while expenditures rose by 63.6% in 2024 to TL 10.77 trillion.
Non-interest expenditures reached TL 9.5 trillion, with interest payments totaling TL 1.27 trillion.
Tax revenues rose 62.3% year-over-year to TL 7.3 trillion, the data showed.
In December, budget revenues reached TL 877.6 billion, while expenditures totaled TL 1.7 trillion.
Although the gross domestic product (GDP) data for the entire 2024 has yet to be released, economists estimate that the budget deficit represented approximately 4.8% of GDP.
Türkiye maintained a budget gap to GDP ratio of around 1% from 2013 to 2016, supported by low public debt, seen as a crucial factor that ensured market stability.
However, the shortfall steadily expanded, reaching 3.5% of GDP in 2020 and ending 2021 at 2.8%. It came in below 1% in 2022, compared to the 3.5% target.
In 2023, escalating expenditures, particularly those related to the aftermath of devastating earthquakes that struck the southern region in February of that year, pushed the deficit to approximately 5.4% of GDP.
The government projects a reduction in the deficit to around 3% of GDP for 2025, citing anticipated decreases in quake-related spending.
