Turkey has posted a first half surplus of 2.9 billion liras, a 41 year record. The country’s bugdet resulted in a 15b4 billion liras of gap in the same period last year. ‘We are talking about an upswing of more than 18 billion liras in six months’ says Finance Minister Mehmet Şimşek, adding that increasing tax revenues have been effective
Finance Minister Mehmet Şimşek says the government’s performance in the first half was a ‘historic success.’ AA photoTurkey had a budget surplus of 2.9 billion Turkish Liras in the first half of this year, the largest nominal first-half surplus in the last 41 years, Finance Minister Mehmet Şimşek announced Friday.
The government’s performance was a “historic success,” Şimşek said at a press conference called to report on the budget performance in the January-June period, adding that robust economic growth had had a positive effect on tax revenues.
Debt reconstruction
In first half of last year, Turkey’s budget ran a deficit of 15.4 billion liras.
“We are talking about an upswing of more than 18 billion liras in six months,” the minister said.
In June alone, there was a budget surplus of 3.1 billion liras following a 5.4 billion-lira deficit in the same period last year. Budget receipts rose 44.7 percent to 26.7 billion liras in June 2011 while expenditure was down 1.2 percent to 23.6 billion liras.
“Recent debt restructuring had an extra contribution to the budget but we will continue to implement strict fiscal discipline in the way ahead,” Şimsek said. “[But] We will remain cautious due to global uncertainties and risks.”
Accordingly, budget expenses equaled 143.2 billion liras, while budget incomes reached 146.1 billion liras from January to June, representing a surplus of 2.9 billion liras.
In the first six months of 2011, tax revenues were around 122.73 billion liras. Turkey’s government has collected nearly 8 billion liras from taxpayers as part of a debt restructuring program in the first half of the year, the finance minister said.
“We expect it to rise significantly by the end of the year,” Şimşek said.
The government, however, would not use this money in current expenditures, he said.
Year end target
Turkey’s government plans to collect nearly 30 billion liras in taxes thanks to a law passed early this year. More than 4 million people have applied for a restructuring of outstanding taxes they owe the state after the new law.
Şimşek urged public institutions not to ask for supplementary appropriation. “We will take our stance considering Turkey’s long-term priorities,” the minister said.
The non-interest surplus in the first six months increased by 2.1 percent compared to the same term in 2010 and reached 25.3 billion liras, the Finance Ministry said.
In the first six months, personnel expenses have increased by 16.1 percent, reaching 36.8 billion liras.
The government’s payments to social security institutions as premiums totaled 6.3 billion liras, while the state bought 12.4 billion liras of goods and services. The current transfers stood at nearly 55 billion liras.
Health expanses increased by 4.5 percent compared with the same period a year earlier, exceeding 2.5 billion liras. At the same time, the sum of health, pensions and social aid expenses received a 27.1 billion share in the budget.
The agricultural subsidiary payments cost a little over 5.5 billion liras.
July 15, 2011ANKARA
SOURCE: HURRIYET DAILY NEWS
