The budget surplus has risen by 66.4 percent over May of 2007. Unak?tan stressed that unlike last year, revenues collected in 2008 met 94.8 percent of expenditures, excluding interest payments.
The primary surplus, which excludes interest payments on government debt, was YTL 5.070 billion in May, compared to a surplus of YTL 3.09 billion in April.

For the first five months of the year, Turkey had a primary surplus of YTL 17.538 billion and a budget deficit of YTL 2.060 billion. Turkey has a budget deficit target for this year of YTL 18 billion. Unak?tan said in May the deficit will be a few billion lira less than the target.

In May 2007 the budget showed a surplus of YTL 2.04 billion and a primary surplus of YTL 6.64 billion, according to data released last year.

"A major increase in budget expenses comes from personnel salaries," the finance minister noted, adding that "salary increases will be adjusted according to rising inflation figures in July."

Turkey's economy has grown at an average of 7 percent a year since a financial crisis in 2001. But growth is slowing while inflation is back in double digits, and the current account deficit is forecast by the market to be as high as $46.8 billion this year.

Unakıtan warned agencies that had turned in a supplemental budget request upon hearing that the budget had witnessed a surplus and said, "There is no money to be given." He also repeated his concerns over political uncertainty in Turkey. "The possibility that a major ruling party will be shut down is creating uncertainty," he noted, adding that "political uncertainty leads in turn to economic risk."

Responding to questions from the press, the finance minister expressed his dislike of "the transfer of some of the revenue collected from a special consumption tax on gas to local municipalities." Noting that the proposal is being debated in Parliament, he stressed that the ministry is trying to find a solution to keep fiscal policy intact.

Todayszaman