Budged ( Central Government Budget)

The public sector has revenues and spendings, as do private companies and people. Ministry of Treasury and Finance General Directorate of Accounting does these calculations under the name of Central Administration Budget. If the revenues are more than the expenses, the budget surplus occurs, if the expenses are more than the revenues, the budget deficit, and if the revenues are equal to the expenses, the budget balance occurs.

Can be seen below that USD-TRY rate on the last day of the years along with the budget calculations of Republic of Turkey announced since 2006. The rates are taken from “tr.investing.com”. Budget values (except in dollars) are taken from the website of Ministry of Treasury and Finance General Directorate of Accounting.

Table 1

Can be seen from Table 1 that the budget had a deficit every year and continued to increase from year to year. However, in order for this to be more objective view, it can be seen the USD values of the budget deficit on the far right of the table. It should be noted that the budget deficit decreased in 2021 compared to 2020.

For instance, what happens if governments can't afford their expenses? Of course they borrow money. The payments of these debts should also be calculated as an expense. The primary balance, on the other hand, is the calculation of these public revenues and expenditures by subtracting the interest payments from the budget account. As a result, it is important to show interest payments as they are an expense and cover a significant part.

Below is a graphic representation of the above values for easier viewing.

Figure 1

Figure 2

As can be seen in Figure 1, interest payments appear as one of the most important expenses of the public sector. Therefore, we can see the deficit in our budget in USD in Figure 2.

Now let's look at what are the revenues of the state. “Budget revenues are collected in two main groups: (1) tax revenues, (2) non-tax revenues. Tax revenues are divided into two: (a) direct taxes (income taxes such as income taxes and corporate taxes and inheritance tax), (b) indirect taxes (taxes on expenditures such as VAT (value added tax) and taxes on wealth - SCT (special consumption tax), and taxes on transactions such as stamp revenues and fees). taxes.) Non-tax revenues such as rental income from state-owned properties, shares taken over from the profits of SEEs (public economic enterprise), traffic fines, fines.” (Eğilmez, 2013)

Expenditures of the government “They are gathered in two main groups: (1) non-interest expenses and (2) interest expenses. Non-interest expenses are divided into four: (a) Personnel expenses (salaries of civil servants, travel expenses, health expenses, etc.). (b) other current expenses (gasoline expenses of government cars, lighting, heating, maintenance and repair expenses of public buildings, etc.). (c) investment expenses (construction of public buildings, construction of schools, etc.). (d) transfer expenses (pensions, student loans, etc.). Interest expenses consist of the interest paid by the government in return for its borrowings." (Eğilmez, 2013)

Finally, the 2022 budget balance can be viewed from Table 2 below. It will be seen that the calculation of the first five months is positive for now.

Table 2

References

Eğilmez 2013: https://www.mahfiegilmez.com/2013/02/butce-dengesi-ve-faiz-ds-denge.html

Table 1,2: muhasebat.hmb.gov.tr/merkezi-yonetim-butce-istatistikleri