The budget deficit deepens even more in 3 months!

The budget deficit deepens even more in 3 months!
Date: 6.9.2022 14:02

The government, which had to update its year-end forecasts in every field, had to change the year-end budget deficit forecast 3 times in 9 months.

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The Medium Term Program (MTP) (2023-2025), prepared by the Ministry of Treasury and Finance and the Strategy and Budget Department, was published in the Official Gazette. In the program, the economic growth forecast was 5 percent for 2022 and 2023, and 5,5 percent for 2024 and 2025. Unemployment rate projections were announced as 10,8 percent for 2022, 10,4 percent for 2023, 9,9 percent for 2024 and 9,6 percent for 2025. Year-end consumer inflation forecasts were 65 percent for 2022, 24,9 percent for 2023, 13,8 percent for 2024, and 9,9 percent for 2025. The estimates for the ratio of current account deficit to national income were 5,9 percent for 2022, 2,5 percent for 2023, 1,4 percent for 2024, and 0,9 percent for 2025.
 

THE GOVERNMENT TURNED 3 TIMES IN 9 MONTHS 

 
Income, expenditure and balance estimates for the central government budget were also included in the MTP. Accordingly, the central government budget deficit, which was 201,5 billion Turkish Liras (TL) in 2021, is predicted to increase to 461,2 billion TL in 2022, while forecasts are given 659,4 billion TL for 2023, 582,7 billion TL for 2024, and 409 billion TL for 2025. As it will be remembered, the budget deficit was foreseen as 278 billion 374 million TL in the 2022 Central Government Budget Law Proposal. With the additional budget brought to the Turkish Grand National Assembly (TBMM) in June, the 2022 budget deficit forecast, which was projected to be approximately 280 billion TL, was estimated to decrease to approximately 80 billion TL. However, according to the announced MTP, the end of 2022 budget deficit was increased to 461 billion TL. This situation caused the power to turn 3 times in 9 months.
 

YEREL HABERLER

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