Turkish Economy - Public Finances

PUBLIC FINANCES

Public finance deterioration accelerated in the 1990s as a result of the structural problems of the Turkish economy and reached its peak level when the financial crisis occurred in 2001.

By means of the economic program, the worsening of the trend has been completely reversed and budgetary discipline has been established.

Thanks to the recent economic program, the total public net debt stock standing at 66.3 per cent of GDP in 2001 decreased to 32.5 per cent at the end of 2009.

Public Net Debt Stock / GDP (%)

As for central government, at the end of 2009, total outstanding external debts amounted to $ 74.1 billion (TL 111.5 billion) whereas total domestic debt stock amounted to $ 219.2 billion (TL 330 billion)

As for public sector, at the end of 2009, total net external debts amounted to TL 25.8 billion whereas total net domestic debt stock amounted to TL 219.9 billion.

Public Net Debt Stock (Billion TL)

On the other hand, EU defined debt stock to GDP ratio has decreased to 45.5 per cent of GDP at the end of 2009 from 73.7 per cent in 2002 and met Maastricht criterion.

EU Defined Debt Stock / GDP (%)

Real interest rates have plunged to single digit levels since the last quarter of 2004. Please note that real interest rates were more than 30% in the last decade. Thus, Treasury decreased its domestic borrowing costs substantially.

Public sector borrowing requirement, as a share of GDP, has decreased significantly since 2001.

EU defined General Government budget deficit to GDP ratio has also decreased significantly since 2001, and met Maastricht criteria.

In 2008, estimated the public sector primary surplus (IMF definition) is 1.8% of GDP.

For further information, please click on the followings:

Debt stocks
Budget revenues and expenditures
Other public finances