(MENAFN) According to data released by the Treasury and Finance Ministry on Friday, Turkey’s central government budget recorded a deficit of 304.5 billion liras, equivalent to approximately USD10.1 billion, during the period of January to February. This fiscal shortfall reflects a substantial gap between budget revenues and expenditures over the two-month timeframe. Specifically, Turkey’s budget revenues amounted to 1.15 trillion liras, equivalent to approximately USD38.35 billion, while total expenditures reached 1.46 trillion liras, or USD48.46 billion.

Breaking down the expenditure components further, non-interest expenditures accounted for the majority of spending, totaling 1.28 trillion liras, or USD42.6 billion, during the Jan-Feb period. Meanwhile, interest payments constituted a significant portion of the budget outlays, amounting to 175.9 billion liras, approximately USD5.85 billion.

When excluding interest payments from the equation, the budget balance reveals an even larger deficit, with a figure of minus 128.6 billion Turkish liras, equivalent to roughly USD4.3 billion. These numbers underscore the magnitude of the fiscal challenges faced by Turkey’s central government, indicating the need for concerted efforts to address budgetary imbalances and enhance financial sustainability.

Furthermore, the exchange rate dynamics during the first two months of the year are also noteworthy, with the average value of one US dollar trading for 30.06 Turkish liras. Such currency fluctuations can significantly impact the purchasing power of the local currency and have implications for various sectors of the economy, including trade, investment, and inflation. As Turkey navigates these fiscal and economic challenges, policymakers may need to implement strategic measures to stabilize the budget, bolster revenue streams, and promote fiscal discipline to ensure long-term financial stability and resilience.

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