Treasury breaks interest record of 257 billion

With the economy stuck between high interest rates and high inflation, the Treasury's interest payments doubled in one month. According to the cash realization report, which is the precursor to budget data, the Treasury's revenues exceeded 1 trillion lira for the first time in April, breaking a record. However, interest payments, which were 135.5 billion lira in March, increased by 107 percent in April to 257.1 billion lira. While the Treasury's expenses exceeded 1.2 trillion lira in April, the cash balance was in deficit by 183.5 billion lira.

BUDGET WARNING

In the January-April period of this year, despite the revenue approaching 3.5 trillion, expenses exceeded 4.5 trillion lira. Thus, in the 4-month period of the year that started with a budget deficit target of 1.9 trillion, the cash balance showed a deficit of 1 trillion 85 billion lira. The Treasury paid 684.5 billion lira in interest in the first 4 months of the year. TEPAV economist Hakkı Hakan Yılmaz emphasized interest expenses and noted that if measures were not taken, the budget targets for this year would not be met.

Yilmaz said, “This wheel will not turn unless political reasonableness is achieved and the economic program is reconsidered and difficult times will come again and hit the vulnerable segments.” The Treasury met its financing needs with domestic borrowing in April as well as in March.