Turkish government deficit soars in 2023 due to earthquake relief efforts

According to the Turkish Statistical Institute (TurkStat), the general government deficit amounted to 1 trillion 272 billion 714 million TRY. While the social security funds sector generated a surplus, both the central government and local governments incurred deficits.

Despite the increased deficit, the general government consolidated gross debt stock to GDP ratio declined to 29.3% in 2023. The total income of the general government rose to 8 trillion 204 billion 943 million TRY, representing 30.9% of GDP. Meanwhile, total expenditures reached 9 trillion 477 billion 658 million TRY, accounting for 35.7% of GDP.

Tax and social contribution receipts increased to 6 trillion 656 billion 251 million TRY in 2023. Taxes on production and imports contributed 48.2% of the total, up from 47.8% in 2022. Net social contributions rose to 25%, while current taxes on income and wealth decreased to 26.6%. Capital taxes fell to 0.2%. (ILKHA)