The Share of Interest Expenditures Decreased while that of Social Security Increased Fiscal Monitoring Report October November 2010 Budget Implementation Results reveal that the share of public services under other categories did not change considerably.

ANKARA - The share of interest expenditures decreased over years while the shares of public services under other categories did not change considerably.  Social security deficit finance surpassed other social assistance items increasing its share in the budget.

Fiscal Monitoring Report October November 2010 Budget Implementation Results by TEPAV Stability Institute was published. The report states that as of the end of November, budget revenues increased by 6.7% year -on-year and reached 255.8 billion TL. Budget revenues increased by 20.2% to 232.3 billion TL. The reduction in interest expenditures and the marked increase in tax revenues came to the fore as important developments.

In addition to the overall evaluation of the budget performance, the report included a section titled "Expenditures by Functional Classification". The section made the following findings for the 2006-2010 period, as of the end of November:

• "- The share of expenditures in the General Public Services category which also includes interest expenses decreases gradually.
• Military expenditures demonstrate a weak downwards trend.
• Expenditures under the category Public Order and Security Services demonstrated a volatile but increasing trend particularly due to the movements in Polis Services and Court Services items.
• Transportation Services under the Economic Affairs and Services category show a relative increase over the last years.
• The share of health services has slowed down in the last years.
• The share allocated for Education Services in total expenditures have increased relatively.
• The most striking development is observed under the Social Security and Social Protection Services which have always had one of the largest shares in total expenditures for years. But when the sub-categories are examined, it is seen that the total share of items such as payments for Elderly, Unemployed, Housing and Invalidity stands below 1% whereas deficit finance for social security institutions under the Social Security and Social Assistance category that is not involved in the classification grows increasingly.

As a result, the share of interest expenditures decreases while the share of other public services remains constant with some insignificant exceptions. Nevertheless, deficit finance for social security system surpasses the other social assistance items offsetting the fall in the share of interest expenditures."