Turkish Lira/Bloomberg

Economy

Turkey resumes push to boost budget with central bank’s cash

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The measures reveal a growing worry on the part of the government over its widening budget deficit as the economy’s downturn makes it harder to collect enough taxes.

Sunday 30, June 2019

Turkey is planning to use central bank cash to help finance its widening budget deficit, just weeks after policy makers refrained from proposing a similar measure for fear it could roil financial markets, reported Bloomberg.

The bill the government has already drafted would let the central bank divert more of its profits to the Treasury. The bill will also include an increase in the income tax for individuals and a higher real estate levy for houses worth more than TRL 10 million ($1.7 million).

Just over a month ago the ruling party held back from proposing a similar law after investor concerns over Turkey’s fiscal standing.

TAGS : Lira, Turkish economy, CBRT

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