Ankara- Turkey ran a budget deficit of 25.2 billion Turkish Liras (about $7 billion) during the first half of this year, in addition to $3.3 billion that were pumped by the government to stimulate the economy.
The budget deficit in June stood at 13.7 billion liras (approximately $3.9 billion), compared to a surplus of 6.4 billion liras (around $1.8 billion) in May. The government revenues in the first six months reached approximately $82.2 billion, while budget expenditures were around $89.1 billion, marking an almost $7 billion deficit. Fiscal measures to stimulate the economy, like expenditure programs and tax incentives, cost some $3.3 billion in the 2017 budget.
Finance Minister Naci Ağbal said on Tuesday that the budget deficit for the first six months of this year stands at 53.9 percent of the government’s end-year targets.
The government is aiming for a budget deficit of 46.9 billion liras (nearly $12.9 billion) at the end of the year, he added.
Turkey’s government ran a 29.3 billion lira (some $9.7 billion) budget deficit last year. The Turkish economy overtook many challenges in 2016, including the coup attempt, terrorist attacks, geopolitical developments, weak foreign demand, and the referendum process on April 16, but Turkey’s economy grew 5 percent in the first quarter this year, compared to the period of January-March 2016.
Over the last three years, the Turkish economy expanded 5.2 percent in 2014, 6.1 percent in 2015, and 2.9 percent in 2016. The Turkish economy’s growth target for the end of 2017 is 4.4 percent, according to the government’s medium-term program.
The current account deficit hit $5.24 billion in May 2017, with an increase of $2.13 on annual basis.
The Turkish Central Bank said the current account deficit hit $5.24 billion in May 2017, with an increase of $2.13 compared to May 2016, which led the rolling 12-month deficit to $35.5 billion.