Macro Analysis /

Turkey: Government budget improves sharply y/y to TRY 23.8bn surplus in March

    15 April 2021
    • Non-tax revenues rise strongly y/y seemingly as CBT transfers TRY 35bn to Treasury as dividend and contingency reserves
    • Tax revenues double y/y on low base, private consumption recovery, tax hikes and restructured debt payments
    • Primary spending growth accelerates to 21.4% y/y due to security, pandemic-related spending, and guarantee payments
    • Budget posts TRY 22.8bn surplus in Q1, suggesting space for new pandemic support measures, in our view