Türkiye’s budget deficit widens in August

ANKARA, Sept. 16 (Xinhua) — Türkiye’s budget deficit surged in August, reaching 129.6 billion Turkish liras (about 3.81 billion U.S. dollars), according to data released by the Treasury and Finance Ministry on Monday.
This marked a significant increase from the 96.8 billion lira deficit recorded in July.
The surge in spending was primarily driven by a 45.8 percent year-on-year increase in total expenditures, reaching 820 billion liras. Non-interest expenditures accounted for the bulk of this rise, climbing by more than 52 percent to 723 billion liras. Interest payments also grew by 11.4 percent to 97.05 billion liras.
In contrast, the country had a budget surplus of 51.3 billion liras in August 2023.
The cumulative budget deficit for the first eight months of 2024 reached 973.55 billion liras, representing a 154 percent increase compared to the same period last year.
The widening deficit underscores the fiscal challenges facing Türkiye as it grapples with high inflation and a weakening currency. The government’s significant increases in public sector wages and pensions have contributed to the growing budget imbalance. ■