Turkey's Budget Shifts to Surplus in November

Turkey’s central government budget deficit narrowed to TRY 528.1 billion in December 2025, down from TRY 830.8 billion in the same month a year earlier. Budget revenues rose 43.7% year-on-year to TRY 1.26 trillion, driven by a 47.9% increase in tax collections to TRY 1.05 trillion, supported by higher income tax, domestic VAT, special consumption tax, and banking and insurance transaction tax receipts. Meanwhile, total expenditures increased 4.8% to TRY 1.79 trillion, fueled by a 2.5% rise in non-interest spending to TRY 1.68 trillion and a 55% jump in interest payments to TRY 116.7 billion. Spending growth was broad-based, with personnel costs, current transfers, and capital expenditures all higher than in December 2024. The primary deficit narrowed to TRY 411.5 billion from TRY 755.6 billion a year earlier, reflecting improved revenue performance and controlled non-interest spending.

Turkey’s central government budget posted a TRY 169.5 billion surplus in November 2025, reversing a TRY 16.6 billion deficit recorded in the same month a year earlier. Total budget expenditures increased 30.7% year-on-year to TRY 1.25 trillion, driven by a sharp rise in non-interest spending, which jumped 39.8% to TRY 1.13 trillion, while interest payments declined 19.4% to TRY 117.9 billion. Meanwhile, budget revenues rose 51.1% to TRY 1.42 trillion, supported by a 55.3% increase in tax revenues to TRY 1.27 trillion, led by strong growth in income tax, corporate tax, domestic VAT, and banking and insurance transaction taxes. The primary balance also strengthened, recording a TRY 287.4 billion surplus in November 2025, up from TRY 129.7 billion a year earlier.

Turkey’s government budget posted a TRY 223.2 billion deficit in October 2025, widening from TRY 186.3 billion in the same month a year earlier. Total budget expenditures rose 43.4% year-on-year to TRY 1.37 trillion, driven by higher non-interest spending (+48%) at TRY 1.21 trillion, while interest payments increased 15.6% to TRY 157.4 billion. Meanwhile, budget revenues grew 49.1% from a year earlier to TRY 1.15 trillion, supported by a 51.6% jump in tax receipts to TRY 976 billion, with strong gains in income tax, domestic VAT, and banking & insurance transaction taxes. The country’s primary balance shifted to a TRY 65.8 billion deficit in October 2025, compared with a TRY 50.1 billion deficit last year.