Budget deficit decreases by 56.5 percent, Simsek says

Turkey saw a decrease in its budget deficit by 56.5 percent in 2011 compared to 2010, Finance Minister Mehmet Simsek told a press meeting yesterday in Ankara, where he evaluated recent budget realizations and macroeconomic developments in markets. Simsek said that Turkey's budget performance was better than expected which was also indicated by a noticeable increase in the state's income last year, mostly thanks to an increase in tax collection. Simsek said that Turkey's budget income increased by 16.4 percent to reach 295.9 billion Turkish liras, and tax revenues also increased by 20.5 percent to climb to 253.8 billion Turkish liras in 2011. Stating that Turkey has displayed a great performance in 2011, Simsek said, "But now we have to consider the year 2012. We will be working hard and exerting efforts to maintain this strong performance in 2012." Referring to the ongoing debt crisis in the eurozone, Sismek said the government believed the worst of the crisis was over. Simsek stressed that the government had the right tools to overcome possible external shocks and that the growing inflation could be kept under control through strengthening of the Turkish Lira against foreign currencies and a slowdown in domestic demand.