Türkiye’s public budget swung to a deficit in September, official data showed Monday, after a brief period of surplus in July and August.
The central government budget registered a shortfall of TL 129.2 billion ($4.63 billion), an increase of 64.3% year-over-year, the Treasury and Finance Ministry said. That compared to some TL 78.6 billion in September 2022.
The budget had recorded surpluses of TL 48.6 billion and TL 51.3 billion in July and August, respectively, after the government unveiled tax hikes on an array of goods to boost income.
Spending in September soared to TL 570.5 billion, outpacing the income of TL 441.3 billion, the Treasury Ministry data showed.
Interest payments rose 113.7% year-over-year to TL 70.8 billion. Tax income jumped 122.6% from a year ago to TL 386.2 billion, the data showed.
The primary deficit, which excludes interest payments, rose 28.4% to TL 58.5 billion, according to the ministry.
Türkiye in July raised taxes on petrol and hiked value-added taxes (VAT) as part of moves to boost revenues after the sharp rise in spending related to the devastating earthquakes in the February and May presidential and parliamentary elections.
Treasury and Finance Minister Mehmet Şimşek has said the government would seek further revenues outside the budget, including from privatization, and that quantitative tightening will be carried out if necessary.
The government has also instructed institutions to review their expenditures.
From January through September, the public budget recorded a gap of TL 512.6 billion, marking a 1,027% increase compared to the same period in the previous year.
Spending amounted to TL 3.95 trillion, while revenues totaled TL 3.44 trillion, the data showed.
The primary deficit jumped 125.8% year-over-year to TL 41.7 billion.
The data also showed the Treasury transferred some TL 14 billion to state energy company BOTAŞ in September, bringing the total to TL 46 billion this year.
