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The coronavirus due to rising budget deficits while still being addressed as a priority area in the global economy, Turkey’s budget deficit in the first 11 months of the year was 42 percent, an increase of £ 132 billion.
According to data from the Ministry of Finance and Finance, the budget surplus increased by 72.7 percent in November to TL 13.4 billion, and the primary surplus increased by 50.4 percent to TL 22.9 billion. by TL.
The budget registered a primary deficit of TL 2.98 billion in the period from January to November. In the period January-November 2019, the primary surplus was TL 2.84 billion.
DUE TO PANDEM, TAX REDUCTIONS APPLY
The government has stated that the priority in the pandemic is the labor market and has been implementing many practices, including tax cuts in some sectors and deferral of tax collection, from time to time since the beginning of the pandemic.
However, another factor in the limited reflection of government pandemic support in the budget is the application of support through different channels. Most of the measures adopted to support the labor market are financed from the budget of the Unemployment Insurance Fund.
In the MTP, updated with the Corona virus, the budget deficit to GDP estimated for this year was revised from 2.9 percent to 4.9 percent. In the MTP, a deficit of 4.3 percent is projected for 2021, 3.9 percent for 2022 and 3.5 percent for 2023.
According to economists’ calculations, the ratio of the budget deficit for the past 12 months to GDP is around 3.4 percent. December is a month with high budget deficits every year.
President Tayyip Erdogan stated that the ratio of budget deficit to national income is forecast at 4.9 percent by the end of 2020, while realizations show that it will be completed with a budget deficit below 4.5 percent. .
Referring to similar countries, Turkey still continues despite the recent increase in budget to offer less open than many other countries. Despite this, the budget deterioration is also considerable.
WAS 70 PERCENT
The budget deficit to GDP ratio remained at around 1 percent from 2013 to 2016. The low public debt market was a major factor that helped Turkey in this period. The budget deficit / GDP expanded from 1.5 percent in 2017 to 1.9 percent in 2018 and 2.9 percent in 2019.
Despite one-off revenues such as reserves, setups, and paid military service from the CBRT, the budget deficit increased by 70 percent in 2019, to a size of close to 70 billion lira.
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