Turkey Budget Deficit Narrows in March

Turkey’s central government budget deficit narrowed to TRY 229.9 billion in March 2026 from TRY 261.5 billion in the same month a year earlier. Budget revenues surged 60.6% year-on-year to TRY 1.23 trillion, supported by a 63.9% jump in tax collections to TRY 1.06 trillion, driven by strong increases in income tax, domestic VAT, VAT on imports, and special consumption tax receipts. Meanwhile, total expenditures rose 42.1% to TRY 1.46 trillion, led by higher current transfers, personnel spending, and interest payments. Non-interest expenditures increased 41.3% to TRY 1.22 trillion, while interest payments climbed 46.3% to TRY 236.0 billion, reflecting rising debt-servicing costs. Despite the deficit, the primary balance returned to a surplus of TRY 6.1 billion, compared with a deficit of TRY 100.2 billion a year earlier, supported by strong revenue growth outpacing non-interest spending.

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.