Turkish government deficit increases to 2.1% in 2022

The general government deficit was estimated at 309 billion 422 million Turkish Lira (TRY), according to TurkStat.

Breaking down the sectors, local government and social security funds showed a surplus in 2022, while the central government sectors reported a deficit. Despite this, the general government consolidated gross debt stock to GDP ratio decreased to 31.7% in 2022.

The share of general government total expenditures in GDP was noted at 30.6% in 2022. Total income of the general government increased to 4 trillion 287 billion 286 million TRY, with the share of income in GDP falling to 28.6%.

On the expenditure side, total expenditures reached 4 trillion 596 billion 707 million TRY, and its ratio to GDP dropped to 30.6% in 2022.

Further analysis revealed that total tax and social contribution receipts saw an increase, reaching 3 trillion 473 billion 992 million TRY in 2022.

Notably, the share of taxes on production and imports in the total rose to 47.8%, up from 45.3% in 2021.

However, the share of net social contributions declined to 23.1%, while current taxes on income and wealth rose to 28.8%. The share of capital taxes also saw a slight increase to 0.3%.

These fiscal developments indicate a complex economic landscape for Turkey in 2022, with a noteworthy shift in various economic indicators. (ILKHA)