Turkey Budget Deficit Narrows in December

Turkey’s central government budget recorded a surplus of TRY 24.4 billion in February 2026, shifting from a deficit of TRY 310.1 billion in the same month a year earlier. Budget revenues surged 87.1% year-on-year to TRY 1.35 trillion, supported by a 91.8% jump in tax collections to TRY 1.12 trillion, reflecting strong gains in corporate income tax, income tax, import VAT, and special consumption tax receipts. Meanwhile, total expenditures rose 28.6% to TRY 1.33 trillion, driven by higher personnel spending, current transfers, and goods and services purchases. Non-interest expenditures increased 28.2% to TRY 1.15 trillion, while interest payments climbed 31.5% to TRY 183.7 billion, highlighting rising debt-servicing costs. Despite the increase in spending, the primary balance posted a surplus of TRY 208.1 billion, reversing the TRY 170.4 billion deficit recorded a year earlier, supported by robust revenue growth.

Turkey’s central government budget deficit widened to TRY 214.5 billion in January 2026, compared with a deficit of TRY 139.3 billion in the same month a year earlier. Budget revenues increased 55.0% year-on-year to TRY 1.42 trillion, supported by a 49.0% rise in tax collections to TRY 1.18 trillion, driven by stronger income tax, domestic VAT, and special consumption tax receipts. Meanwhile, total expenditures rose 54.9% to TRY 1.64 trillion, reflecting broad-based spending increases. Non-interest expenditures rose 32.0% to TRY 1.18 trillion, while interest payments jumped sharply by 180.0% to TRY 456.4 billion, highlighting the growing burden of debt servicing. Despite higher spending, the primary balance recorded a surplus of TRY 241.9 billion, widening significantly from TRY 23.8 billion a year earlier, supported by robust revenue performance at the start of the year.

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.