May 05, 2014 - 0 Comments - Data -

Transfer Payments

During the past decade, or to be more precise since 2003, the most significant transformation in Turkey’s government expenditures is the gradual decline in interest payments (both in absolute terms and as a proportion of overall expenditures) accompanied by a gradual increase in transfer payments. According the Ministry of Finance data, in real terms (2003 prices), government’s debt servicing fell from 41% (58.5 billion TL) of the overall expenditures to 13% (24 billion TL), whereas transfer payments has increased from 22% (31.4 billion TL) to 37% (69 billion TL). Another noteworthy development in the same period is the fact that personnel expenditures (inclusive of social security co-payments) has increased from 20% (29 billion TL) to 28% (51 billion TL) of overall expenditures. Below, we have illustrated these developments graphically both in terms of billion TLs (Table 1) and percentages (Table 2) using 2003 prices.

Table 2

Table 1

In Table 3, we itemize the different components of Current Transfers and their trajectory throughout the past decade. The most important line item here is the transfers to Social Security institutions. This line of expenditure has increased from 16 billion TL in 2003 to 33.1 billion TL in 2013. Second largest line of expenditure is Share of Local Government and Funds. While agricultural subsidies did not change substantially, we also observe an increase in other current transfers.

Table 3

Sources:

Dataset is retrieved from Ministry of Finance General Directorate of Budget and Fiscal Control website, “Merkezi Yönetim Bütçesi” link under “İstatistikler”

Statistical Table: “Merkezi Yönetim Bütçe Dengesi (Dönüşüm Tablosu 2000-2013)”

Note 1: As this is removed from the website, one may check the table named “Merkezi Yönetim Bütçe Dengesi (2000-2012)” instead.

Note 2: Data is converted to 2003 basic prices using the inflation dataset.
The inflation dataset is downloaded from The Central Bank of The Republic of Turkey, “GENERAL STATISTICS” link.

Statistical Table: “Consumer Price Index (2003=100) (TURKSTAT) (Monthly)”

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