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6.0 Public Sector 6.1 Budget
The central bank will transfer a total TRY50-55bn to the Treasury throughout 2020. Early profit transfer was executed in January, resulting in a budget surplus in the month. Total transfers from the central bank amounted to TRY90bn in 2019.
Budget deficit leapt 70% y/y to TRY123.7bn, about 2.9% of forecasted GDP, in 2019 as the government cranked up spending in the face of a recession.
Cash budget ran a deficit of Turkish lira (TRY) 130.5bn (€19.9bn) in 2019 versus a TRY70.35bn shortfall in 2018.
In the government’s new economic programme, released in September 2019, officials forecast a budget deficit of TRY125bn for 2019.
The deficit target for 2020 is TRY139bn, or 2.9% of GDP, excluding additional transfers from the central bank.
Haluk Burumcekci of Burumcekci Consulting, said in January that 2019 revenues had been boosted by central bank profits, transfers from legal reserves, one-off contributions and tax restructurings. For 2020, he said, “the [deficit] target of 2.9% does not look realistic without additional measures”.
6.2 Debt
TURKEY -DEBT (eop)
2013
2014
2015
2016
2017
2018
2019
Budget: gross debt (LC bn)
586
613
678
760
876
1,067
1,329
Budget: gross debt (% GDP)
32.4
30.0
29.0
29.1
28.2
28.8
31.1
28 TURKEY Country Report March 2020 www.intellinews.com
