Duran Bülbül: 2023 will close with a large budget deficit

The budget, which had a surplus in August, saw a significant deficit in September. While central government budget expenditures were 285 billion 567 million liras in September 2022, they rose by 99.8 percent to 570 billion 482 million liras in the same month this year. Thus, 10.2 percent of the 5 trillion 589 billion 85 million lira appropriation foreseen for central government budget expenditures in 2023 has been utilized.

While a non-interest deficit of 45 billion 511 million liras was recorded in September last year, a deficit of 58 billion 454 million liras was recorded in the same month this year.

Budget expenditures excluding interest increased by 97.9 percent compared to the same month last year, rising to 499 billion 719 million liras. The realization rate of non-interest expenditures according to budget appropriations was calculated as 10.1 percent last month, the same as the 10.1 percent recorded in the same month of 2022.

This situation is an indication that fiscal discipline in Turkey has seriously deteriorated. It has become clear that there will be significant deficits in October, November, and December as well.

In other words, 2023 will close with a large budget deficit.

Looking at this situation, 2024 will be a challenging year for the Turkish economy.

Furthermore, considering that this deficit will be covered by borrowing, it is clear that interest rates will rise further, which will have a negative impact on growth.

Apart from this, new tax hikes are also inevitable.

In such an economy, even if you double the minimum wage, it will not be of any benefit. This structure will further increase inflation and impoverish the low-income group even more.

News Source: 12punto