TEPAV Fiscal Measure and Budget Warning for October

TEPAV Center Director Prof. Dr. H. Hakan Yılmaz emphasized that despite the budget posting a surplus in August, performance weakened compared to the same period last year, and announced that fiscal measures should be reviewed in October.

August Budget Data

While the central government budget posted a surplus of 13.9 billion TL in August, the budget deficit for the January-August period stood at approximately 1.3 trillion TL. Compared to the 96 billion TL surplus recorded in the same month of last year, this year saw an 86 percent decline.

Income and Expenditure Balance

It was stated that the upward trend in expenditures continued during the first eight months of the year, while a decline was observed in tax revenue collections. It was noted that if the slowdown on the revenue side continues, the budget deficit could increase during the remainder of the year.

Disinflation and Fiscal Policy

Attention was drawn to the increase in non-interest expenditure forecasts within the targets of the new Medium-Term Program. It was requested that fiscal policy assume a stronger role alongside monetary policy in the fight against inflation and that concrete sets of measures be announced.

Fuel Costs and Investments

It was stated that the increase in diesel prices reached around 90 percent in the eight-month period, creating cost pressures on inflation. It was expressed that room could be created for expenditure control by postponing low-urgency public investments.