Treasury’s scary 2020 cash budget performance

As per the details of the Turkish Treasury’s December 2020 cash budget figures, the monthly cash deficit has widened by an immense 27% to TL46.7 bn.  The revenues up by a sizable 36% yoy was almost matched by the 32% yoy spike in expenditures creating such a huge monthly cash deficit.

For  financing, the government mostly depended on external borrowing rather than the domestic market as it had been doing over the course of the earlier months.

For the whole of 2020, revenues up by 15.9% and expenditures by 18.7%, Turkey’s cash budget deficit soared by 40% to TL 182 bn from last year’s TL 130 bn.  To cover for the gap, the Treasury’s domestic market borrowing was up by 77% while its external borrowing was down 27%.

Turkey ended 2020 with 14.6% CPI inflation.