Turkey Budget Surplus Narrows in August

Turkey’s central government posted a budget deficit of TRY 532.2 billion in September 2026, widening from the TRY 309.6 billion deficit in the corresponding month of the previous year, as expenditures increased faster than revenues. Total expenditures rose by 34.1% year-on-year to TRY 1,785.4 billion, mainly due to increases in current transfers (48.7%), personnel expenses (24.5%), capital expenditures (34.6%), and expenses for purchases of goods and services (60.8%). Meanwhile, total revenues rose by 22.7% to TRY 1,253.1 billion, driven by a 21.8% increase in tax collections to TRY 1,074.1 billion. Higher receipts from income tax, import VAT, and domestic VAT were among the main contributors. The primary deficit widened sharply to TRY 269.2 billion in September, from TRY 73.0 billion a year earlier.

Turkey’s central government budget posted a surplus of TRY 12.9 billion in August 2026, narrowing sharply from a surplus of TRY 96.7 billion in the same month a year earlier. Total expenditures surged 37.8% year-on-year to TRY 1.6 trillion, driven by higher spending on current transfers (+39.0%), personnel costs (+42.0%), social security contributions (+47.9%), purchases of goods and services (+32.6%), and capital expenditures (+17.3%). Non-interest expenditures increased 42.8% to TRY 1.4 trillion, while interest payments rose 9.7% to TRY 197.1 billion. Meanwhile, revenues jumped 28.5% year-on-year to TRY 1.7 trillion, fueled by a 28.1% increase in tax collections to TRY 1.5 trillion, with income tax, corporate income tax, domestic VAT, and import VAT all recording strong growth. As a result, the primary surplus narrowed to TRY 209.9 billion from TRY 276.4 billion a year earlier.

Turkey’s central government budget posted a deficit of TRY 378.1 billion in July 2026, widening sharply from TRY 23.9 billion in the same month a year earlier. This marked the largest budget deficit since December 2025, as total expenditures surged 59.8% to TRY 1.8 trillion, driven by higher spending on current transfers (+57.2%), personnel costs (+43.3%), social security contributions (+48.2%), purchases of goods and services, and capital expenditure. Non-interest expenditures increased 48.4% to TRY 1.5 trillion, while interest payments climbed 142.8% to TRY 326.8 billion. Meanwhile, revenues jumped 28.8% year-on-year to TRY 1.4 trillion, fueled by a 30.0% increase in tax collections to TRY 1.2 trillion, reflecting robust growth in income tax, domestic VAT, import VAT, special consumption tax, banking and insurance taxes, and customs-related revenues. As a result, the primary balance swung to a deficit of TRY 51.3 billion from a surplus of TRY 110.7 billion a year earlier.