Turkey's budget deficit jumps to $278 billion in September

Turkey’s central government budget deficit surged to $278 billion in September as a result of the increase in government spending and lowered corporate tax revenues.

The government ran a monthly fiscal deficit of 78.6 billion liras ($4.2 billion) last month, its biggest shortfall this year, compared to a surplus of 3.59 billion dollars last August, according to data announced on Monday by the Treasury and Finance Ministry. 

The current deficit is the largest from January 2022, when the budget recorded a deficit during December 2021 of $145.7 billion, compared to a surplus of $32 billion in November 2021.

During a full year from September 2021 to September 2022, budget revenues amounted to $2.6 trillion, compared to expenditures of $2.83 trillion, hence the deficit of $278.4 billion.

Turkish lira was again trading on Monday near its lowest level in light of the rise in inflation rates to the highest levels in a quarter of a century, along with the insistence of officials to move forward in reducing interest rates.

Officials led by President Tayyip Erdogan in Turkey believe that the interest-cutting policy will help reduce inflation in the coming months, while economists expect inflation to rise and the lira to fall next year.