Turkey's budget experiences TL 4.2 billion surplus in Jan

Finance Minister Naci Ağbal said the budget surplus increased to TL 4.2 billion ($1.426 billion) in January 2016 from TL 3.8 million in the same month of the previous year. Ağbal evaluated the budget realization report for January 2016 in a written statement. According to the statement, the primary surplus soared to TL 9.8 billion in January 2016 from TL 8.8 billion in the same month of the previous year. Budget expenditures stood at TL 42.5 billion and non-interest budget expenditures were realized at TL 36.9 billion in January 2016. Budget revenues and tax revenues were realized at TL 46.7 billion and TL 39.7 billion in the same month, respectively.

Ağbal said, "We will maintain our focus regarding fiscal discipline in 2016."

General budget tax-free income increased to TL 5.493 billion in January 2016, marking a 38.2 percent upsurge compared to the same month of last year. The equity revenues of special-budgeted administrations stood at TL 1.081 billion, while the revenues of regulatory and supervisory institutions reached TL 461 million in January 2016.

Last month, the central administration spent TL 42.521 billion out of the TL 158.081 billion worth of funds that were allocated for the provisional budget expenditures in 2016. The administration spent TL 36.342 billion of the funds in January 2015.

Last month, the central administration spent TL 36.909 billion, which corresponds to 26.6 percent of the TL 138.641 billion-worth of funds that were allocated for non-interest provisional budget expenditures for 2016. Staff expenses soared 17.4 percent in January 2016 compared to the same month last year, reaching TL 14.886 billion. Also, 36.7 percent of the funds that were allocated for staff expenses were spent. The provisional budget appropriated TL 40.518 billion for staff expenses in 2016.

Stare contributions to social security institutions surged 19.8 percent, reaching TL 2.598 billion in January. Consequently, 37.6 percent of the TL 6.910 billion-worth of funds that were allocated in the provisional budget was spent. Also, 15 percent of the funds that were allocated for the purchase of goods and services were spent in January. A total of TL 1.955 billion-worth of goods and services were purchased in January, and expenditures in this area soared 27.9 percent compared to the same period of last year. The provisional budget for 2016 appropriated TL 12.328 billion for the purchase of goods and services.

Current transfers increased 25.7 percent in January, reaching TL 15.987 billion. As a result, 26.3 percent of the funds that were set as a part of the provisional budget of TL 60.797 billion were spent. A total of TL 8.215 billion was transferred for health, pension and social aid expenditures last month. Agricultural incentives, which are included in current transfers, stood at TL 635 million, and the share of local administrations amounted to TL 3.992 billion.

Capital expenditures and capital transfers reached TL 235 million and TL 220 million in January, respectively. Lending expenses amounted to TL 1.127 billion. Interest expenditures reached TL 5.612 billion, marking an 11.9 percent increase compared to the same month of last year.

Budget revenues increased 16.5 percent and reached TL 46.720 in January from TL 40.109 billion in the same month of last year. Moreover, tax revenue collection rose 13.8 percent, amounting to TL 39.685 billion.

The general budget's tax-free incomes stood at TL 5.493 billion with a 38.2 percent upsurge. The special consumption tax increased 26 percent, while the bank and insurance transactions tax increased 25 percent, the income tax increased 14.8 percent, the inward value-added tax (VAT) increased 14.4 percent, the stamp tax increased 12.1 percent, fees experienced a 3.2 percent increase and other tax collections increased 6.5 percent. On the other hand, corporate income tax and VAT applied on imports decreased 19.5 percent and 2.6 percent, respectively.