Turkey Budget Deficit Widens in January

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.

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.