Government debt quadrupled

The presidential system has dragged the state into the swamp of debt along with the citizens. The gross debt burden of the public sector, which was TL 1.1 trillion in 2018 when the presidential system was first introduced, increased 4.2 times in March this year and reached TL 5 trillion. The ratio between public debt and national income increased from 13.5 percent to 17.1 percent in the same period.

According to official data from the Ministry of Finance and Finance, 665 billion lira of the gross public debt burden consisted of internal debt and 505.1 billion lira of external debt. By 2023, approximately 2.6 trillion lira of the debt consisted of internal debt and 2.4 billion lira of external debt. The largest increase in external debt was due to increases in the exchange rate rather than new debt. In the same period, the Central Bank’s gross debt increased from 426 billion lira to 915 million lira.

INCREASING BOND LIABILITIES

In this period, the internal debt burden of the central government increased 4 times from the level of 586 billion lira to 2.348 billion lira. Similarly, the stock of central government external debt increased from $91 billion to $117 billion. In addition, the interest and TL structure of internal debts deteriorated.

In the new system, public borrowing from international institutions increased just 17 percent from $22 billion to $25.8 billion, while external borrowing from the Treasury through bonds increased 32 percent from $69.2 billion. to $91.5 billion. The share of loans in the stock of external debt decreased from 24.1 percent to 22 percent in 5 years due to the cessation of credit taps, and the share of Treasury bond loans increased from 75.9 percent. percent to 78 percent.

385 billion TL in interest in 1 year

The central government will pay TL 299 billion in interest in the period until the elections to be held next March. The interest to be paid in the coming year will reach 384.5 billion lire. In the coming year, the amount of principal and interest on the internal debt to be paid by the public will exceed 982 billion lira.

Short-term debt has risen sharply

While the short-term debt in the public sector gross debt stock increased by 60 percent in 5 years, the increase in the long-term debt stock remained at the level of 34.5 percent. Therefore, the share of short-term debt in total gross debt increased, while the share of long-term debt decreased. The private sector also became a net debt payer as it was unable to find external debt during this period. In addition, its short-term debts increased from $66.4 billion to $88.3 billion. Long-term debt fell from $210.3 billion to $150 billion. This shows that the private sector had to find short-term debt.