The budget had a surplus of 576 million TRY in the same period of last year. As stated in the Monthly Budget Realizations Report, the primary surplus, which was 11.4 billion TRY in August 2019, was 40.1 billion TRY primary surplus in August 2020. Budget revenues increased by 15.1% between August 2019 and August 2020 to TRY 108.6 billion, while budget expenditures decreased by 14.3% to TRY 80.3 billion in the same period. In the same period, tax revenues increased by 47.8% and reached TRY 98.5 billion, with the effect of increasing home and automobile sales as a result of credit campaigns carried out by state banks. Budget expenditures, excluding interest, decreased by 17.4% to 68.4 billion TRY, due to the fact that the payments made to retirees on the occasion of the Eid al-Adha were made in July this year, as well as a 31 percent decline in current transfers.
When we look at the 2020 cumulative data; It was observed that the budget had a deficit of 110.9 billion TRY in the January - August period. It is seen that the budget, which had a deficit of 68.1 billion TRY in the 8-month period of the previous year, displayed a more negative image compared to the previous year. While a primary surplus of 1.2 billion TRY was provided in January - August 2019, a primary deficit of 19.3 billion TRY was realized this year. Budget revenues increased by 10.1% to 650.5 billion TRY between January - August 2019 and January - August 2020, while budget expenditures increased by 15.6% to 761.4 billion TRY in the same period. In the same period, the increase in tax revenues was realized as 18% and reached 510.4 billion TRY. Budget expenditures excluding interest increased by 13.6% and reached 669.8 billion TRY.
It is observed that the budget, which had a deficit for 6 consecutive months on a monthly basis, gave a surplus in August due to the increase in tax revenues and the decrease in expenditures. It is observed that monthly budget revenues, which increased by around 15% compared to the previous year, showed a real increase when it is adjusted for annual inflation. Tax revenues, which contributed most to this, were fed by taxes from private consumption, supported by low-interest credit campaigns in August. However, the tightening in financial conditions within the framework of exchange rate and interest rate developments after August will cause this effect from demand to dampen. Although the tax burden on imports and private consumption is increased, the effect on tax revenues will not remain at this level due to the declining demand due to increasing interest rates. Although the budget had a surplus in August, it indicates an increase in deficit in the whole year compared to the previous year due to the effect of government expenditures during the pandemic period and weakening demand.
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